While Build Your Dreams (BYD Auto) is experiencing a positive reception for its all-electric SUV, the BYD Atto 3, the Chinese automaker is encountering challenges behind the scenes. According to sources, several officials from BYD Auto have been facing difficulties in obtaining Indian visas for the past few months. These Chinese officials from BYD Auto intend to visit India for discussions with an India-based company regarding their expansion plans.
Since the introduction of its first all-electric vehicle, the e6 electric MPV, BYD Auto has been strategically planning to expand its operations in India. After launching the Atto 3 electric SUV, the Chinese automaker has expressed its desire to establish an advanced production facility in India. To achieve this goal, BYD Auto is currently engaged in discussions with Megha Engineering and Infrastructure Limited, an Indian company.
However, reports indicate that Chinese officials from BYD Auto are encountering difficulties in obtaining Indian visas. Consequently, both parties have been holding talks in neighboring countries such as Nepal and Sri Lanka to discuss their expansion plans in India. Megha Engineering and Infrastructure Limited have already proposed a $1 billion joint venture with BYD Auto for local assembly of the Atto 3 and e6. However, the approval of this proposal is pending from the Indian government’s Department for Promotion of Industry and Internal Trade.
No official statement yet
While no official reasons have been provided for the denial of Indian visas to BYD Auto officials, it’s worth noting that Chinese officials, citizens, and companies have faced challenges in their interactions with India since the conflict in the Galwan region, where 20 Indian soldiers lost their lives. Since this incident, Chinese companies operating in India have encountered increased scrutiny and stricter working conditions as a consequence of these unfortunate events in Galwan.
In the automotive industry, MG, another Chinese-based automaker, has also faced operational difficulties. The China-owned British car maker, currently owned by SAIC, is seeking a new partner in India to acquire a major controlling stake in its Indian operations. This move is aimed at ensuring smoother operations and investments in the country. According to reports, MG Motor India is in discussions with Sajjan Jindal, Chairman and Managing Director of JSW Group, regarding a controlling stake in the company.