BYDDY - India government trashes Chinese EV maker Megha-BYD's proposal to set up $1 billion plant -report

2023-07-24 04:22:32 ET

• The Indian government is said to have rejected Chinese automaker BYD’s ( OTCPK:BYDDY ) proposal to establish a $1 billion four-wheeler manufacturing facility in India, as the government seems adamant about keeping Chinese players away from India’s major sectors, including telecom, automobile, and cyberspace, according to an Economic Times report on Saturday.

• Investments are ramping up in India as the country pushes ahead with its energy transition. The move comes amidst ongoing discussions between the Indian government and US billionaire Elon Musk's Tesla to establish a supply chain ecosystem in the nation in the near future.

• The Chinese EV giant's earlier proposal to build EVs as well as electric batteries in India in partnership with an Indian EV company, Megha Engineering and Infrastructure Ltd., has apparently hit a roadblock over “security concerns", the report said.

• According to an Indian official reported by the Economic Times, "Security concerns with respect to Chinese investments in India were flagged during the deliberations." Another official asserted that such Chinese investments were not conceivable by citing "existing guidelines."

• BYD is already well established in the Indian auto industry. It plans to sell at least 15,000 EVs in 2023 while increasing its distribution network and expanding production capacity if needed.
• BYD has already invested $200 million in India, where it sells the Atto 3 electric SUV and the e6 EV to corporate fleets. The company also intends to introduce its Seal luxury electric sedan this year, the report added.
• However, the government was not reportedly keen to give the nod to the Chinese EV manufacturer to invest in India.

• More on India's investment potential:

• India's New Look: Paving Roads To Efficiency And Investment

• China's BYD plans $1B joint venture to make EVs in India - report

• U.S. to help India speed up energy transition, says Janet Yellen

• INDY: Large-Cap Indian Stocks Are Probably Overvalued

• INDA And SMIN: Why It's Time To Bet On India

• EPI: Reasonably Priced Play On India's Investment Upcycle

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