India rejects Chinese automaker's $1bn factory proposal
Proposal also included plans to up charging stations, research and development, and training centres in India
July 22, 2023
India has turned down Chinese electric vehicle (EV) manufacturer BYD's $1 billion proposal to set up a factory in partnership with Megha Engineering and Infrastructures in Hyderabad, Reuters reported.
An investment proposal by BYD was submitted to the Department for Promotion of Industry and Internal Trade (DPIIT) which said the Chinese company would build electric cars and batteries in India.
It also included plans to up charging stations, research and development, and training centres in the South Asian country.
However, DPIIT had sought opinions from other government departments on the proposal.
"Security concerns with respect to Chinese investments in India were flagged during the deliberations," the report quoted an Indian official as saying.
Another official said these investments are not allowed as per the foreign direct investment (FDI) rules in India which require the government's approval for investments from countries it shares its borders, EVs Insider reported.
BYD is a Chinese conglomerate manufacturing company situated in Shenzhen, Guangdong, China. It has its subsidiary Olectra Greentech in India which manufactures electric buses.
