Without the possibility of investing in production in India, BYD trusts the assembly factory in the southern city of Chennai | Photocredit: Qilai Shen
China’s Byd Co. Expires with his attempts to expand in India, despite roadblocks from the government who prevent the electric vehicle maker from performing important business transactions there.
Like most Chinese companies, BYD has not been able to obtain Visa for managers after a fatal collision between Indian and Chinese soldiers along a disputed Himalayan border in 2020 led to a great decline in political ties. That is, in view of the EV gigantic refuge for keeping board meetings and business interactions at a high level in Colombo in Sri Lanka and Kathmandu in Nepal, and even as far away as Singapore, according to people who are familiar with the issue.
Ketsu Zhang, director of BYD for India, has not been able to obtain a work permit since he left the local basis of the EV maker in Chennai, despite the government’s efforts to facilitate his journey, said that the people who asked not to be identified because they are not authorized to speak publicly.
Zhang worked from the headquarters of the car manufacturer in Shenzhen in 2021 before they moved to Tokyo this year, they said. From Japan he supervises Asian markets, including India, the people said.
A presence on the ground is especially important for manufacturers, given the need for rapid decision -making, tackling productivity problems and the determination of community ties.
Cold shoulder
The cold shoulder is mutual. Already in March, travel restrictions were still held in the political spit. That month an Indian contingent had to be redeemed that an important meeting of BYD car dealers in Shenzhen, after the majority of the participants, including the employees of the company in India, was unable to obtain visas, a person who was familiar with the business said.
A representative for BYD in India refused to comment.
Despite the operational problems, BYD has proven to be popular with Indian drivers – the sale in the first half of this year is almost the total units that will be sold in 2024.
Indian officials have been clear that they will not welcome the investments of the car manufacturer – Minister of Trade Piyush Goyal said earlier this year that it is a “no” for BYD due to caution about the strategic interests of the country.
India has already rejected BYD’s $ 1 billion plan to build a factory in collaboration with a local company. This does not allow the Chinese company to be eligible for reduced rates for imported EVs in exchange for determining a substantial presence on production in India.
The freezing contrasts with the experience of Tesla Inc., Chief Executive Officer Elon Musk, met Indian Prime Minister Narendra Modi in the US earlier this year. The American car manufacturer opened its first showrooms in India this month, with deliveries that already started in August.
Tesla has no plans to set up local production, which means that it is confronted with import load of no less than 110% for fully assembled vehicles.
Expansion overseas is crucial for BYD, which means that the goal is to sell 5.5 million cars this year, because the demand in China is stagnating and it draws the anger of Beijing after rounds of heavy price deposits.
But without the possibility of investing in production in India, BYD trusts its assembly factory in the southern city of Chennai, which has an annual capacity of 10,000 to 15,000 units, to meet Indian demand.
Heavy duties
The company also imports most cars that it sells in India, but hefty tasks – aimed at shielding domestic companies – effectively doubles the costs of a vehicle and India limits the volumes unless a model has received a local driving certificate.
Although the tensions between China and India thaw, it is unclear whether sidewalk edges on professional visas will be lifted or whether BYD will ever be welcomed with open arms.
Yet there are provisional signs of progress. Earlier this month, India Chinese nationals allowed tourist visa again.
Published on July 28, 2025
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