BYD Faces Setbacks in India Amid Diplomatic Strains

Chinese electric vehicle (EV) giant BYD is facing significant challenges in its India operations due to ongoing geopolitical tensions between China and India.

Since the 2020 border conflict, BYD India's Managing Director, Ketsu Zhang, has been unable to secure a visa to India, forcing the company to remotely manage operations from neighboring countries such as Sri Lanka, Nepal, and Singapore. These diplomatic hurdles have had a tangible impact on the company’s local ambitions. In 2023, the Indian government rejected BYD’s proposed US$1 billion joint venture to set up a manufacturing facility in the country, citing national strategic concerns.

Key Highlights

• BYD India’s MD is unable to secure a visa post-2020 border clash
• India's government rejected BYD’s $1B local plant proposal
• Sales in H1 2025 nearly match total sales in 2024 despite limited capacity

As a result, BYD has been limited to assembling EVs at its existing Chennai facility, which has a modest capacity of just 10,000 to 15,000 units per year.

Despite these limitations, BYD has seen strong sales momentum in India. The company’s vehicle sales in the first half of 2025 have already approached its total sales for all of 2024, indicating growing consumer interest in its EV offerings. However, BYD’s growth is constrained by its reliance on imports, which face high tariffs—hindering its competitiveness against local and more deeply rooted international players.

Also Read:BYD to Begin EV Assembly in Pakistan by Mid-2026

Without significant local manufacturing, BYD remains excluded from favorable import duty structures and production-linked incentives. While the company has shown resilience, the lack of government support and a full-time local leadership presence could slow its long-term growth in one of the world’s fastest-growing EV markets.