BYD's $1 Billion Plan for India hits Roadblock
The Indian government is not keen on the Chinese company, BYD's $1 billion electric vehicle plans. Recently, BYD was planning to make a joint venture with Megha Engineering and Industries, India. But the Indian government is not keen on the 1 billion dollars electric vehicle plan of BYD.
Security issues over the investment plan of BYD in India for electric vehicles
The Indian government is concerned about security issues with the Chinese company’s plans to make electric vehicles in India. According to reports, “the authorities are thinking about the problems of lack of control over technology, which would lead to dummy entities. Also, a lot of joint ventures assisted by Chinese firms are heavily weighed and controlled by the foreign partner.”
The circumstance of growing scrutiny is not only limited to automobile organizations, but also to smartphone companies, consumer electronics firms, and telecom companies from China in India.
The plans of the Chinese company, Great Wall Motors were stopped. And, MG Motors also deals with the same problems.
Recently, the Chinese company gave a proposal of investing $ 1 billion in India, for setting up a center for manufacturing electric cars and batteries in India. And, this was to be done in partnership with an Indian company, Megha Engineering and Infrastructures.
Indian News Report regarding the investment plan of BYD in the Indian electric vehicle market
As per a report by the Times of India, “There is a discomfort in the home ministry and external affairs ministry over the entry of Chinese companies in the wake of the government’s stand to keep businesses from across the border out of the Indian market, considering the security issues around many of them".
There are increasing concerns in the Indian 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", and the Indian firm is more or less a dummy entity, with not much control on technology, decision-making, and other important know-how.
"In the BYD company investment decision, the government has had similar concerns, which have come to the front now as the Chinese electric firm wants to go aggressive on India."
Investment proposal from a private company in India and BYD to the Indian government
A private company from India based in Hyderabad, Megha Engineering and Infrastructures has sent a joint proposal along with the Chinese company, BYD to the Indian government. The Indian electric vehicles policy regulators received the joint investment proposal from the Indian and Chinese companies for the setting up of an electric vehicle manufacturing center in India.
BYD plans for global presence in the electric vehicles industry
According to reports, the Chinese company, BYD is thinking of setting up a full line-up of all the electric vehicles from the BYD brand in the Indian market. Electric cars would be available from hatchbacks to luxury models.
BYD from China is the largest manufacturer of electric vehicles and plug-in hybrid electric vehicles globally. The firm wants to grow its global presence as fast as possible so that it will challenge Tesla, as Tesla is presently in the first position in the sales of electric vehicles alone.
If the company’s investment plan in India gets approved, it will provide BYD with a global presence in almost every car market across the world, except the United States.
Previously, the Indian government had made the FDI rules tight for the Chinese firms, stopping the plans of the Chinese company, Great Wall Motors. MG Motors, which is presently selling electric cars in India, is getting issues in making new investments in India for extending its business in the Indian market. This company is presently working to have partners from India on board, with a majority stake.