India Restricts Market Access for Chinese EV Maker BYD Amid Efforts to Attract Tesla
India has decided to restrict market access for Chinese electric vehicle (EV) manufacturer BYD Co., citing strategic and security concerns. Union Commerce Minister Piyush Goyal stated that the government needs to be cautious about foreign investments, particularly from countries with which India shares land borders. He emphasized that, as of now, BYD’s entry into the Indian market is not approved.
This decision aligns with India’s broader approach to scrutinize investments from neighboring countries, especially China, due to concerns over national security and potential unfair trade practices. In contrast, India is actively seeking investments from companies like Tesla, aiming to position itself as a global hub for EV production.
BYD’s previous proposal to invest $1 billion in a manufacturing facility in India was rejected in 2024. The company has refuted recent reports suggesting plans for a new manufacturing plant, clarifying that no such investment decisions have been finalized.
India’s policy stance reflects a careful balancing act—encouraging foreign investment in the EV sector while safeguarding strategic and security interests. The government continues to engage with global EV leaders, including Tesla, to foster a robust and secure EV ecosystem within the country.
