BYD Considers Expanding Electric Vehicle Operations in India
BYD Co., the Chinese electric vehicle giant, is exploring ways to expand its presence in India due to the increasing demand for its vehicles. According to insiders, the company is looking into local assembly options to better meet the needs of Indian consumers.
While BYD’s previous attempt to establish a full assembly plant in India was rejected, the company is now considering assembling semi-finished parts, which could simplify regulatory approvals and reduce costs. The push for local assembly comes after visits by senior BYD executives to the region.
The demand for BYD’s cars has surged, leaving dealers with numerous bookings. This situation contrasts sharply with Tesla, which has had to offer discounts on some models to attract buyers in India.
These developments highlight both the opportunities and challenges BYD faces in a rapidly growing automotive market. Despite previous setbacks in its investment proposals, the company is now making a renewed commitment to India. Relations between India and China have improved recently, even as past tensions arose over trade.
However, a BYD spokesperson has not responded to inquiries about their plans in India.
As growth in China starts to slow due to competition and reduced government support for electric vehicles, BYD is looking to increase sales outside its home country by nearly 25% this year. Last year, the company sold around 5,500 cars in India—a significant 88% increase—though it had to navigate strict import limits that cap fully assembled models at just 2,500 units. By switching to Semi-Knocked Down (SKD) assembly, BYD could reduce taxes on imports from 70% down to 30%.
In India, BYD markets the Atto 3 compact e-SUV and the eMax7 multipurpose vehicle, both of which meet the necessary requirements to be imported beyond the cap. The Atto 3 starts at approximately ₹25 lakh ($27,255), positioning it competitively against local manufacturers like Mahindra and Tata, while still being more affordable than Tesla’s offerings. The Sealion 7 has also seen success, with 2,200 units sold last year, priced between ₹49 lakh and ₹55 lakh, making it more accessible than Tesla’s Model Y.
BYD has communicated with Indian auto regulators about the impact of import limits on its growth path. Unlike Tesla, which continues to face challenges from similar tariff barriers, BYD’s inventory sold out quickly in the last quarter.
Despite slight improvements in diplomatic relations, policy support for foreign companies in India remains inconsistent. While some BYD executives have been traveling to India since last year, plans for visits from higher-level officials have been postponed without further explanation.
