KATHMANDU: Chinese EV maker BYD is exploring local assembly options in India to support rising demand and overcome import limits.
According to Bloomberg, the company is considering semi-knocked-down (SKD) or similar assembly models. These plans are still at an early stage and have not been publicly announced.
BYD is also working to secure local safety and regulatory approvals for more models. Senior company executives are expected to visit India as discussions progress.
India earlier rejected BYD’s proposal for a full-scale manufacturing plant. The decision came amid tighter scrutiny of Chinese investments. Local assembly is seen as a cheaper and easier alternative under current rules.
Demand for BYD vehicles in India has outpaced supply. Dealers are reported to have hundreds of pending customer bookings. Most inventory for the December quarter is already sold out.
BYD’s India sales rose about 88 percent last year to around 5,500 units. This growth came despite import duties of up to 110 percent on fully built vehicles. Regulations also cap imports of each model at 2,500 units.
SKD assembly could reduce import duties to around 30 percent. This would improve pricing and availability.
BYD’s strategy contrasts with Tesla’s position in India. Tesla has been offering discounts to boost demand. BYD has gained traction with competitive pricing, even with high duties.
BYD currently sells the Atto 3, eMax7 MPV, Sealion 7, and Seal sedan in India. The company has approached regulators to highlight how import limits could slow its growth.
