According to a story in the Times of India, India is not keen on letting Chinese electric vehicle manufacturer BYD set up shop in the nation due to security concerns. According to reports, BYD has partnered with an Indian business to make a $1 billion investment plan to develop electric vehicles and batteries there.
There is “concern 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,” the Times of India story claims.
The Times of India reported that the government is becoming increasingly concerned that many joint ventures “arranged” by Chinese companies, some of which receive state funding, are “heavily weighed and controlled by the foreign partner” while the Indian company is essentially a dummy entity, with little control over technology, decision-making, and other crucial know-how.
Similar worries that the government had in the BYD case have now surfaced as the Chinese power business plans to take India by surprise. According to a previous report from Reuters, BYD and privately held Megha Engineering and Infrastructures of Hyderabad have submitted an application to Indian regulators for the creation of an EV joint venture.
According to the report, BYD intends to produce a complete line of luxury and hatchback electric vehicles under the BYD brand in India.
The largest manufacturer of EVs and plug-in hybrids in the world, BYD, is rapidly expanding globally in an effort to overtake Tesla, which still dominates the market for EVs alone. With the exception of the United States, BYD would have a foothold in all significant global auto markets if the investment in India is approved.
The Indian government had previously tightened FDI regulations for Chinese businesses, blocking efforts by China’s Great Wall Motors. MG Motors, which now sells automobiles in India, is currently working on a proposal to bring Indian partners on board with a majority interest because it is finding it difficult to attract new investments there for expansion.
