India rejects BYD EV factory due to security concerns

India has rejected a proposal by BYD for the construction of a US$1 billion (RM4.56 billion) factory in the country in partnership with Megha Engineering and Infrastructure, The Economic Times reported according to the South China Morning Post.

“Security concerns with respect to Chinese investments in India were flagged during the deliberations,” the report quoted an Indian official as saying. BYD was reported earlier this month as having submitted a US1 billion (RM4.56 billion) investment proposal for the manufacture of electric cars and EV batteries in India.

The Chinese automaker said it was seeking to capture 40% of India’s EV market by 2030, however its investment proposal arrived at a time of increased scrutiny by India of Chinese companies, the South China Morning Post wrote.

India rejects BYD EV factory due to security concerns

Another Chinese manufacturer, GWM had also planned to invest US$1 billion (RM4.56 billion) in India, but also failed to buy a former General Motors production plant as it did not receive approval from the Indian government to close the deal, SCMP reported, adding that the Indian government is also investigating MG Motor India, a unit of SAIC Motor, for financial irregularities.

The country’s department of commerce, the department for promotion of industry and internal trade (DPIIT) had sought the opinions of other department on the proposed venture by BYD, the report by The Economic Times added.

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