New Delhi. While the government is preparing to welcome American businessman Elon Musk’s Tesla to set up a supply chain ecosystem in the country in the near future, it has reportedly rejected Chinese electric vehicle giant BYD Motors’ plan to set up a $1 billion EV manufacturing plant in the country.
BYD’s proposal to join hands with Hyderabad-based Megha Engineering & Infrastructure Ltd (MEIL) for electric cars and batteries has apparently been shelved due to “safety concerns”, reports The Economic Times.
In its proposal to the Department for Promotion of Industry and Internal Trade (DPIIT), BYD-MEIL reportedly proposed to manufacture 15,000 electric cars per year in the country.
Meanwhile, Olectra Greentech, a unit of MEIL, has already manufactured two electric buses in technical collaboration with BYD Motors.
However, the government was reportedly not too keen on allowing Chinese EV makers to invest in India.
Ironically, BYD already has a significant presence in the EV car market in India.
BYD India Pvt Ltd targets to sell 15,000 units this year while expanding its distribution network and expanding production capacity if required.
The company currently produces the multi-purpose vehicle (MPV) E6 model from its Tamil Nadu plant. The company’s plant near Chennai has a capacity to produce 10,000 units of vehicles per year.
In January this year, the Chinese electric carmaker unveiled its new luxury sedan BYW SEAL, which it said will be launched in the country during the last quarter of 2023.
The Chinese electric carmaker also claimed that the BYD Seal has a range of up to 700 km on a single charge.
The BYD SEAL is BYD India’s third model for the passenger EV segment in India after the all-new E-6 electric MPV and BYD ATTO 3 e-SUV. Both these models are already on sale in the country.
BYD India is a wholly owned subsidiary of Chinese company BYD Auto, funded by Warren Buffet’s Berkshire Hathaway.
“If the need arises, we will expand the capacity,” Sanjay Gopalakrishnan, senior vice-president of the company’s electric passenger vehicle business, had told IANS in October last year.(IANS)
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Web Title-Government rejects one billion dollar investment proposal of Chinese EV company!
