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BYD shifts to import-only strategy in India amid FDI challenges
Industry News- Oct 14,24
BYD currently imports three models from China and believes this strategy will sustain its operations in the near term.
Chinese electric vehicle (EV) giant BYD has decided to pursue an import-only approach in India, shelving its earlier plans to establish a car manufacturing plant. This shift comes after the Indian government rejected the company’s $1 billion investment proposal, citing concerns under the new foreign direct investment (FDI) regulations for EV manufacturers.
Rajeev Chauhan, Head- EV India, BYD, confirmed the change in strategy at the launch of the eMAX 7 multipurpose vehicle, priced between Rs 2.69 million and Rs 2.99 million (ex-showroom). Despite high import duties, BYD aims to sell 3,500 units in India this year—40% more than the 2,500 units sold in 2023. "Even with these numbers, we believe we can build brand awareness," Chauhan remarked.
BYD currently imports three models from China and believes this strategy will sustain its operations in the near term. Chauhan hinted at future local investments, stating, "When the situation is favorable, we are open to exploring opportunities."
While the reliance on imports raises vehicle prices, BYD's robust supply chain has allowed the company to manage costs effectively. Chauhan acknowledged that local production would have resulted in more affordable vehicles but emphasised, "Despite the pricing challenges, BYD’s strategic focus on the value chain ensures competitive pricing."
There are also unconfirmed reports of BYD engaging with Indian corporate houses for potential partnerships, similar to MG Motor's collaboration with JSW Group. However, no official statements have been made regarding these talks.
(ET)
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