TL;DR
BYD is considering local assembly in India to meet surging EV demand and overcome import barriers, after an 88% sales increase last year.
Chinese automaker BYD is actively considering expanding its presence in India, including exploring local assembly options, as a surge in demand for its electric vehicles (EVs) is straining its ability to sell imported models under existing regulations. Dealers are currently holding hundreds of bookings, a stark contrast to competitors like Tesla, which has resorted to offering discounts in India. This reassessment follows recent visits by senior BYD executives, aimed at overcoming import barriers in one of the world's fastest-growing auto markets.
While India previously rejected BYD's proposal for a full manufacturing plant, the company is now looking into assembling semi-assembled parts, a strategy that would face fewer regulatory hurdles and significantly reduce import duties—potentially from as high as 70% on fully built vehicles to around 30%. BYD's sales in India surged by approximately 88% last year, reaching about 5,500 vehicles. The company currently offers models such as the Atto 3 e-SUV, eMax 7 multipurpose vehicle, Seal sedan, and Sealion 7, demonstrating both the market's potential and the regulatory challenges involved.
