After submitting a proposal to the government in India alongside its local joint venture partner this past spring, Build Your Dreams (BYD) is reportedly shelving a $1 billion investment following opposition from the government in New Delhi over security concerns relating to such a large investment from a Chinese company.
Since its inception in 1995, BYD has quickly risen through the ranks as a major global manufacturer, most recently excelling in electric vehicles and the batteries that power them. The company is quickly expanding the availability of its EVs beyond China into new markets, like Japan and Europe.
Additionally, India has remained a strong territory for BYD since 2007, which began as a venture in building batteries and cellphones before being bolstered by a joint venture with local manufacturer Megha Engineering and Infrastructures in 2013.
This relationship led to the establishment of an assembly facility for BYD’s Atto 3 for the local market in India this past December. Just recently, however, Reuters reported that the Chinese automaker had submitted a proposal to government ministries in India to invest $1 billion to jointly build batteries and EVs in the country alongside Megha.
Now, a mere two weeks later, Reuters is reporting that BYD has soured on the deal and has let its joint venture partner in India know it may take its money elsewhere.
BYD to pull $1B investment after India’s security concerns
Two people with knowledge of the discussions state that BYD has let Megha know it intends to shelve the massive investment, citing criticism from New Delhi.
After submitting the aforementioned joint venture proposal this past April, at least two officials from three Indian ministries, including finance and external affairs, expressed concerns over security from India accepting an investment from China’s BYD.
BYD has declined to comment on the status of its potential investment in India but, as of Thursday, had not officially withdrawn its proposal from the government ministries. The two sources state Megha Engineering has urged BYD to remain patient on the situation before dropping the investment altogether, looking to seek clarity from the politically charged statements from those government officials.
BYD’s original timeline was to begin EV production in India by 2025, but the situation remains in limbo, to say the least.
Author: Scooter Doll
Source: Electrek
