- Thursday, February 27, 2025
The government rejected the plan from the Shenzhen-headquartered company and Hyderabad’s Megha Engineering and Infrastructures Ltd. over national security concerns, said one report.
By: Shubham Ghosh
THE Narendra Modi government has dismissed a proposal by Chinese carmaker BYD Co. to set up a $1 billion electric vehicle (EV) factory in India in partnership with a local company, Bloomberg reported citing informed sources.
According to the report, the government rejected the plan from the Shenzhen-headquartered company and Hyderabad’s Megha Engineering and Infrastructures Ltd. over national security concerns, the sources added on the condition of anonymity as the decision was yet to be publicised.
According to one of the sources, the use of Chinese homegrown technology is a worry.
While foreign direct investment in the South Asian nation’s automobile sector doesn’t require approval typically, investment proposals from nations that share a border with it need political and security clearance from top ministries such as external and home affairs, the Bloomberg report added.
Bloomberg received no response from either BYD or Megha Engineering, a 34-year-old company which has infrastructure projects in sectors such as power and transport. Neither the news outlet get any response from India’s finance, heavy industries and home affairs ministries.
India has restricted China’s investment in the wake of their deadly border clashes along the disputed border.
The Economic Times on Saturday (22) reported about the government’s rejection of BYD’s investment plan.
The development delivers a blow to BYD’s India plan. The Chinese automaker, which entered India in 2007, aimed to capture 40 per cent of the country’s domestic EV market by 2030, senior vice president of the country’s global operations told Bloomberg earlier this year.
The maker is planning to sell 15,000 EV units in India in the current year.
