Byd failed, once again
India will not change a position vis-à-vis Byd, the Chinese electric giant. This is confirmed by the Minister of Commerce, Piyush Goyal, on the sidelines of the India Global Forum in Mumbai. “It’s no for the moment”did he summarize against Bloomberg TV, recalling that India had to remain cautious about the investments it authorizes. The country had already rejected, in 2023, a joint venture project at $ 1 billion between Byd and Megha Engineering.
This policy does not only target Byd. Great Wall Motor, another Chinese manufacturer, has left the Indian market after the failure of several regulatory procedures. An Indian law also requires special approval for any investment from border countries, China included.
Strategic concerns and unfair competition
India is advancing several reasons to justify this blockage. first, concerns about the links between certain Chinese groups and central power in Beijingeven the army. Then, criticisms on Chinese export support methods: grants, erased loans or selling price deemed artificially low.
Added to this is an already well -installed protectionist commercial policy. Fully assembled vehicles are subject to 100 % customs duties. A way to protect local manufacturers like Tata Motors or Mahindra, while demand for affordable electric models is increasing.
Tesla advances on several fronts
While Byd remains blocked, Tesla, for her part, progresses. The American manufacturer has launched recruitments in Mumbaiopened its first concessions, and initiated the steps to certify its Model 3 and Model Y with local authorities. An obligatory passage to market vehicles in India.
Tesla would also have started discussions with Tata Group to create a local supply chain. Objective: to produce parts on site, and to establish itself permanently in a market which aims to become a global pole for electricity.
A positioning following the Washington-New Delhi line
The choice to promote Tesla at the expense of Byd is clearly in a broader logic. India seeks to attract foreign industrialists while keeping China remotelyin a context of international trade tensions. And by aligning herself more on the United States, it also strengthens its positions in the current negotiations with other economic blocks.
