BYD set to expand India operations: sources

BYD is preparing to expand its operations in India as diplomatic ties between China and India improve, according to sources cited by Bloomberg.

The Shenzhen-based EV maker, which already sells four models in India and ranks as the country’s fourth-largest electric carmaker by sales, has begun securing visas for senior managers and engineers to visit its factory in southern India for training and machinery servicing.

BYD is considering launching its Atto 2 compact SUV in India early next year, aiming to price it below 2 million rupees (US$22,700) despite a 70% import levy.

India recently resumed business visas for Chinese travelers, allowing BYD’s India managing director to visit soon, with additional senior executives expected to follow.

The company is also seeking regulatory approval to import more vehicles and may later explore local battery pack assembly or partnerships with Indian firms, but no new investment announcements are planned during these visits.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Five years of remote management highlight operational disadvantages of geopolitical tensions

BYD’s inability to send senior staff to India for five years demonstrates how diplomatic tensions can severely handicap business execution, even for well-funded companies with local operations.
The company has been managing its Indian operations remotely since restrictions began, preventing crucial activities like training programs, machinery servicing, and factory assessments that competitors with direct access could conduct normally1.
This operational constraint helps explain BYD’s current position as only the fourth-largest electric carmaker in India by sales, despite being the world’s largest EV seller globally1.
The company’s ambitious 2022 target to capture 40% of India’s EV market by 2030 and sell 15,000 units in 2023 likely faced significant execution challenges without senior leadership presence on the ground2.

BYD’s return coincides with intensifying competition in India’s rapidly growing EV market

India’s EV market has experienced explosive growth, with sales surging over 2,218% from FY 2020 to FY 2023, creating significant opportunities that BYD missed during its forced remote operations3.
However, the competitive landscape has shifted dramatically, with domestic players Tata Motors, JSW MG Motors, and Mahindra now controlling over 90% of the market4.
BYD’s planned launch of the budget-friendly Atto 2 under ₹20 lakh faces immediate competition from VinFast, which just launched its VF6 compact SUV at ₹16 lakh last week1.
Despite India’s low current EV adoption rate of just 7.6% of new vehicles sold in 2024, the established players have built strong dealer networks and customer relationships during BYD’s absence5.