TL;DR
BYD is considering local assembly in India to meet surging EV demand and overcome import restrictions, potentially expanding its model offerings and reducing tariffs.
Chinese electric vehicle (EV) giant BYD Co. is reportedly exploring options for establishing local assembly operations in India. This move is driven by the rapidly growing demand for its vehicles in the country and the need to navigate strict import limits that currently constrain supply.
Sources indicate that BYD is evaluating semi-knocked-down (SKD) assembly, which would involve importing partially completed units and assembling them locally. This strategy could help reduce import tariffs and allow the company to offer a wider range of EV models to Indian consumers. While the plan is still in its exploratory phase and not officially announced, it highlights how BYD's sales in India are outstripping current import quotas.
BYD's sales in India witnessed significant growth last year, with increasing orders for models like the Atto 3, Seal, and eMAX 7. India's current cap on fully built vehicle imports at 2,500 units per model per year limits BYD's ability to meet demand. Local assembly would allow BYD to boost availability, mitigate the impact of high import duties, and strengthen its footprint in one of the world's fastest-growing EV markets.
