India is not keen on $1 billion electric vehicle plan of China's BYD: Report
The Indian government has security concerns over Chinese electric vehicle manufacturer BYD setting up a joint venture with Megha Engineering and Infrastructures in India, according to local media reports. Authorities are concerned a lack of contro...
By ET Online | Updated:
India is not keen on allowing Chinese electric vehicle maker BYD to set up shop in the country owing to security concerns, according to a report in the Times of India. BYD reportedly has submitted a $1 billion investment proposal to build electric cars and batteries in India in partnership with a local company.
According to the Times of India report, there is "discomfort in the home and external affairs ministries over the entry of Chinese players in the wake of the government’s stand to keep players from across the border out of the Indian market, given the security concerns around several of them".
"There are growing concerns in the government that many joint ventures "arranged" by the Chinese companies — some of which get state support — are "heavily weighed and controlled by the foreign partner", while the Indian company is more or less a dummy entity, with not much control on technology, decision-making, and other critical know-how," the Times of India claimed.
"In the BYD case, the government has had similar concerns, which have come to the fore now as the Chinese electric company wants to go aggressive on India."
BYD and privately held Hyderabad-based Megha Engineering and Infrastructures have submitted a proposal to Indian regulators to form an EV joint venture, Reuters reported earlier.
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BYD, as per the report, plans to build a full line-up of BYD-brand EVs in India, from hatchbacks to luxury models.
BYD, the world's largest producer of EVs and plug-in hybrid vehicles, is on a rapid global expansion to challenge Tesla, which still leads in sales of EVs alone. If the India investment is approved, it would give BYD a presence in all major global car markets, with the exception of the United States.
Earlier, the Indian government tightened FDI rules for Chinese companies, thwarting plans of China’s Great Wall Motors. MG Motors, which currently sells cars in India, also faces difficulty getting new investments in India for expansion and is now working on a proposal to get Indian partners on-board with a majority stake.
