Chinese electric vehicle manufacturer BYD has decided to pursue an import-only strategy for the Indian market, following the rejection of its $1 billion investment proposal to establish a local manufacturing facility. The shift in approach aligns with India’s new EV policy, which BYD will navigate by continuing to import its vehicles rather than building them domestically.
Rajeev Chauhan, head of BYD’s electric passenger vehicle division in India, confirmed this strategic change during the launch of the company’s new multipurpose vehicle, the eMAX 7. The model is priced between Rs 26.9 lakh and Rs 29.9 lakh (ex-showroom). Despite higher costs due to customs duties, BYD aims to sell 3,500 vehicles this year, an increase of 40% from the 2,500 units sold in the previous year.
Currently, BYD imports three vehicle models into India. Chauhan noted that while this strategy is adequate for the time being, the company is open to considering future investments if market conditions improve.
Although the import model leads to higher prices for consumers, Chauhan pointed out that BYD’s strong supply chain helps mitigate some of the cost challenges. He acknowledged that local manufacturing would have reduced prices but maintained that the company remains competitive within the current framework.
There is also speculation regarding BYD’s potential partnerships with Indian corporate entities, similar to MG Motor’s collaboration with JSW Group, although no formal announcements have been made.