A plan by Chinese automaker BYD to build a $1 billion plant in Hyderabad with an emphasis on SUV production was rejected by the Indian government.
BYD filed a proposal for the facility earlier this month. The firm had been preparing to develop the site with the help of a local business, Megha Engineering and Infrastructures. According to the proposal, BYD's facility would produce 10,000 to 15,000 electric vehicles annually. According to what is known, Megha Engineering and Infrastructures planned to fund the facility with its own money while BYD would provide its expertise and technology.
Additionally, BYD and Megha planned on constructing training and research facilities and charging stations nationwide.
The ideas, however, were rejected by India's Department of Commerce and Department for Promotion of Industry and Internal Trade (DPIIT). According to a report, "security concerns with respect to Chinese investments in India were flagged during the deliberations."
Further, the Indian government has amended its foreign direct investment policy, requiring government clearance for projects from nations with which it shares a land border.
BYD will undoubtedly be frustrated by the choice, but with its present emphasis on Chinese vehicle manufacture and sales, it is still growing. Regarding numbers, BYD sold 1,255,637 plug-in hybrid and battery-electric vehicles in the first half of 2023 globally, a substantial rise of 95.78% from the prior year, according to information released earlier this month. Sales of 700,244 automobiles were made in the second quarter, of which 352,162 were battery-electric cars, and the remaining 348,081 were plug-in hybrids. The Chinese EV manufacturer is optimistic about selling 3 million new cars this year.