Tensions Escalate: India Turns Down Chinese Automaker’s Factory Proposal
India has rejected a $1 billion proposal from Chinese electric vehicle (EV) manufacturer BYD to establish a factory in partnership with Megha Engineering and Infrastructures in Hyderabad. The investment proposal aimed to build electric cars and batteries in India, as well as develop charging stations, research and development facilities, and training centers in the country.
The Department for Promotion of Industry and Internal Trade (DPIIT) sought opinions from other government departments regarding the proposal. Security concerns were raised during the deliberations, leading to the rejection of the investment. According to Indian officials, such investments from countries sharing borders with India require government approval, and they are not allowed as per the foreign direct investment (FDI) rules in the country.
BYD is a Chinese conglomerate with its subsidiary Olectra Greentech in India, which focuses on manufacturing electric buses. The rejection of the proposal may impact BYD’s expansion plans in the Indian EV market.
