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India has rejected Chinese automaker BYD’s proposal to set up a $1billion Electric Vehicle (EV) factory and battery manufacturing plant in India in partnership with Hyderabad-based Megha Engineering and Infrastructure Ltd, the Economic Times reported on Saturday.
India’s Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT) had sought opinions from other departments on the investment proposal, the report said.
“Security concerns with respect to Chinese investments in India were flagged during the deliberations,” the report quoted an Indian official as saying.
Earlier this month it was reported that BYD had submitted a US$1 billion investment proposal to build electric cars and batteries in India in partnership with a local company.
BYD said it was seeking to capture 40 per cent of India’s electric vehicle (EV) market by 2030, but its investment proposal comes at a time when India is increasing scrutiny of Chinese firms.
Great Wall Motor, which also planned to invest US$1 billion in India, failed in an attempt to buy a mothballed General Motors plant after it did not get government approval to close the deal. The government is also probing MG Motor India, a unit of Chinese carmaker SAIC Motor, over alleged financial irregularities.
India’s Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT) had sought opinions from other departments on the BYD proposed venture, the report said.
India’s switch to electric vehicles is lagging behind other countries such as China and the US, hampered by high upfront costs and a lack of charging infrastructure.