BYD runs India business remotely amid Indo-China tensions. What it means?

Share via: BYD faces cold shoulder in Indian auto industry. Blame it on the geopolitical tensions between India and China. BYD faces cold shoulder in Indian auto industry. Blame it on the geopolitical tensions between India and China. View Personalised Offers on Check Offers Chinese car manufacturer BYD, which has already made its space in the Indian electric passenger vehicle market, is forging ahead with its attempts to expand in the country despite roadblocks from the government that are preventing the EV major from conducting key business dealings here. Like many other Chinese companies, BYD has been unable to obtain visas for its executives owing to the geopolitical tensions between India and China since 2020. Bloomberg reported that this situation has seen the EV giant resorting to holding board meetings and high-level business interactions in Colombo in Sri Lanka, Kathmandu in Nepal, and even as far away as Singapore. The report stated that Ketsu Zhang, BYD’s managing director for India, has been unable to obtain a work permit since he left the automaker’s local base in Chennai. This forced him to work from BYD’s headquarters in Shenzhen in 2021 before moving to Tokyo this year. Such situations have created roadblocks for the OEM, claims the report, citing the reason that on-the-ground presence is particularly important for manufacturers, given the need for quick decision making, addressing productivity issues and establishing community ties. Despite gaining popularity, BYD faces operational challenges in IndiaBYD has proved popular with the Indian drivers, as the company’s sales numbers in the country in the first half of this year nearly touched the total units sold by the OEM in 2024. However, this has not removed the operational challenges the company has been facing in India. The report has stated that Indian officials have been clear that they won’t welcome investment from the carmaker. It also stated that Union Commerce Minister Piyush Goyal said earlier in 2025 that it’s a no to BYD due to caution around the nation’s strategic interests. India has already rejected BYD’s $1 billion plan to build a plant in partnership with a local company. This leaves the Chinese auto company unable to qualify for reduced tariffs on imported EVs in exchange for establishing a substantial manufacturing presence in India, the report further stated. This freeze contrasts with the experience of Tesla. The US auto major’s CEO, Elon Musk, met with Indian Prime Minister Narendra Modi in the US earlier this year. Tesla opened its first showrooms in India on July 15, with deliveries set to begin as early as August 2025. Interestingly, Tesla doesn’t have any immediate plans to establish local manufacturing, meaning it faces import taxes of as much as 110 per cent for fully-assembled vehicles. Check out Upcoming EV Cars in India. First Published Date: 28 Jul 2025, 09:19 am IST
Source: hindustantimes.com