BYD Explores Semi-Assembled EV Production in India to Bypass Import Caps
BYD considers local assembly in India to handle high demand and import limits; hundreds of bookings await delivery.
Chinese electric vehicle maker BYD Co. is weighing options to expand its footprint in India, including exploring local assembly, as demand for its cars surges and dealers grapple with hundreds of pending orders, according to people familiar with the matter.
The company is evaluating semi-knocked-down (SKD) assembly in India and is working to obtain local safety and regulatory certifications for additional models, the sources said. The move is being considered amid import quotas and steep duties on fully built vehicles and would follow recent visits by senior BYD executives to assess the market and regulatory landscape.
India had earlier rejected BYD’s proposal to set up a full manufacturing facility, but assembling semi-finished units could offer a faster and more cost-effective alternative while easing regulatory approvals. Strong bookings have prompted the automaker to rethink how it can bring more vehicles into the country, in contrast to rivals such as Tesla Inc., which has reportedly offered discounts to boost sales in India.
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The discussions underline both the opportunity and the challenges BYD faces in one of the world’s fastest-growing automobile markets. While New Delhi has maintained tight scrutiny of Chinese investments, ties between India and China have shown signs of thawing since last year, even as both countries face trade pressures from the United States.
BYD’s India sales jumped about 88 percent last year to around 5,500 vehicles, testing the limits of rules that cap imports of each fully built model at 2,500 units. Import duties can go as high as 110 percent on fully built cars, though SKD assembly could reduce tariffs significantly. The company currently sells models such as the Atto 3, eMax7, Sealion 7, and the Seal sedan in the Indian market.
Despite pricing at the premium end of India’s mass-market EV segment, BYD’s vehicles continue to undercut Tesla on price, helping fuel demand. A spokesperson for the company did not respond to queries on its India expansion plans, even as the automaker looks to grow deliveries outside China amid slowing growth and intensifying competition at home.
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