The move follows executive visits, aiming to overcome import barriers as BYD sales surge, highlighting India’s market potential and regulatory hurdles.
Chinese automaker BYD is weighing options to expand its presence in India, including local assembly, as rising demand strains its ability to sell imported electric vehicles under existing regulations, according to people familiar with the matter.
The company is exploring some form of local assembly and seeking safety and regulatory approvals for additional models, as India caps imports of each fully built model at 2,500 units. The discussions follow recent visits by senior BYD executives and are aimed at overcoming import barriers in one of the world’s fastest growing auto markets, the people said, requesting anonymity as the plans are not public.
India had previously rejected BYD’s proposal to build a full manufacturing plant. However, the company is now considering assembling semi-assembled parts, a move that would face fewer regulatory hurdles and significantly lower import duties. Such an approach could reduce tariffs to about 30% from as high as 70% on fully built vehicles, the people said.
Strong demand has prompted the reassessment, with dealers sitting on hundreds of bookings, in contrast to rival Tesla, which has been offering discounts to lift sales in India. BYD’s vehicle prices remain relatively competitive despite import duties of up to 110%.
BYD’s India sales rose about 88% last year to roughly 5,500 vehicles, highlighting both market potential and regulatory challenges. The company currently sells the Atto 3 e SUV, eMax 7 multipurpose vehicle, Seal sedan and Sealion 7 in the country.
