India has rejected Chinese automaker BYD's proposal to set up a manufacturing plant in the south of the country. Indian business daily the Economic Times reported that BYD's plan for a $1 billion factory in India was not approved by the government.
Earlier, Reuters reported that the Chinese auto giant was setting up the plant in partnership with Hyderabad-based Megha Engineering and Infrastructure Ltd.
"Security concerns with respect to Chinese investments in India were flagged during the deliberations," an Indian official said, according to the report.
BYD is the world's largest producer of EVs and plug-in hybrid vehicles. The earlier report had said that BYD would present a full line-up of its electric vehicles in India in the long run.
India, which is the world's third-largest car market, has adopted an aggressive EV policy, under which it aims to sell only electric cars by 2030.
BYD, Tesla and SAIC-GM Wuling emerged as the biggest EV players in the world. They accounted for 36 percent of the market in 2022, data released by IDC showed
China continued to drive the EV market, even as the government continued to promote electric vehicles in the backdrop of high oil prices. Besides, the government's assistance, car companies offered subsidies and price-guaranteed promotions. According to IDC, EV companies in China sold 7 million units.
BYD's Rise
One of the key reasons behind the rise of BYD is the support of the Chinese government. The company directly benefits from Beijing's policy of incentivizing buyers of electric vehicles to reduce the country's carbon footprint. BYD is now the largest selling Chinese carmaker.
