Modi government rejects electric car company BYD’s $ 1 billion proposal

Elon Musk’s company Tesla is trying hard to enter India. Meanwhile, the Government of India has also dashed the expectations of Chinese giant electric car company BYD. According to the report of the English newspaper Economic Times, the government has rejected BYD’s proposal to invest one billion dollars in India. BYD had partnered with Hyderabad-based Megha Engineering & Infrastructure Limited to set up a manufacturing plant in India.

Security is being cited as the reason behind the government rejecting the proposal of China’s electric car company. In its proposal to the Department for Promotion of Industry and Internal Trade (DPIIT), BYD-MEIL reportedly proposed to manufacture 15,000 electric cars per year in the country. DPIIT had sought inputs from various departments to assess the investment proposal of the company. During the discussion, concerns were raised on security issues related to Chinese investments in India.

BYD, the world’s leading electric vehicle manufacturer in terms of sales, has already introduced two EV models in India. The company unveiled its electric car Atto during the Auto Expo. In addition, BYD is providing technical support to Olectra Greentech, a subsidiary of MEIL, for its electric buses.
10000 cars are manufactured in Chennai plant

The company currently produces the Multi Purpose Vehicle (MPV) E6 model from its Tamil Nadu plant. The company’s plant near Chennai has a capacity to produce 10,000 units of vehicles per year. BYD India is a wholly owned subsidiary of Chinese company BYD Auto, funded by Warren Buffet’s Berkshire Hathaway. Foreign companies have to enter into agreements with local companies to enter India.