The Indian government rejected a proposal through Chinese automaker BYD to identify a billion-dollar production facility in Hyderabad intended for SUV production.
BYD had planned to identify the site with local company Megha Engineering and Infrastructure and submitted a proposal for the plant earlier this month. In the proposal, BYD said the plant would build between 10,000 and 15,000 electric cars a year. It is understood that Megha Engineering and Infrastructure planned to contribute the capital of the plant while BYD would contribute its knowledge and technology.
In addition, BYD and Megha intended to identify charging stations in the country and also planned to build study and progression and education centers.
Read: BYD sold a record 1. 25 million PHEVs and electric cars in the first part of the year
However, India’s Department of Commerce, Department of Industry Promotion and Domestic Trade (DPIIT) rejected the plans. A Reuters report said “security considerations related to Chinese investments in India were informed deliberations. “
Local publication Business Today notes that the Indian government replaced its foreign direct investment policy in April 2020, now government approval is required for investment from countries with which it has a land border.
While BYD will no doubt be disappointed with the decision, it is still booming with its current focus on Chinese car production and sales. Earlier this month, it revealed that BYD sold 1,255,637 plug-in hybrids and battery-electric cars in the first part of 2023, representing a significant increase of 95. 78% over the past year. while the remaining 348,081 were plug-in hybrids. The Chinese automaker aims to sell 3 million new cars this year.