India Rejects Chinese Automaker BYD's $1 Billion Proposal For EV Manufacturing Facility

Chinese conglomerate BYD faces a setback as India has reportedly rejected its proposal to set up a $1 billion factory in the country. The automaker in partnership with Megha Engineering and Infrastructures (MEIL) had planned to set up a manufacturing facility for developing electric cars and batteries.

The Indian government has rejected BYD Motors' proposal to set up a $1 billion four-wheeler manufacturing facility in India in partnership with Hyderabad-based Megha Engineering and Infrastructures, as reported by the Economic Times.

Both companies were looking to form a joint venture for which a proposal was submitted to the Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT).

It is being said that the department has sought opinions from other departments on the investment proposal.

According to the report, concerns related to security concerning Chinese investments in India were raised during the discussions.

Earlier this month, it was Reuters reported that China's BYD has submitted a $1 billion investment proposal to build the four-wheeler manufacturing facility by forming a JV with the Hyderabad-based firm. Under the proposal, a full line-up of BYD-brand electric cars in India from hatchbacks to luxury models.

However, Reuters could not independently verify the contents of The Economic Times' report.

On Monday, BYD shares listed on Shenzhen Stock Exchange, traded lower by 1.66% to 259.94 Chinese yuan.

BYD is among the world's largest producer of EVs and plug-in hybrid vehicles and competes against Elon Musk's Tesla models. BYD became a key player in the transition from gas-powered vehicles to electric vehicles by developing the cutting-edge Blade Battery and dual-mode hybrid power technology.

Meanwhile, Hyderabad-based Megha Engineering & Infrastructures (MEIL) is a multi-sector infrastructure company with a strong footprint across various sectors like hydrocarbons, electric buses, defence, telecom, power, transport, manufacturing, general and social infrastructure, irrigation, and drinking water. As per the website, this $5 billion company has made its presence felt in areas that have been key drivers of growth.