Build Your Dreams (BYD Auto), the Chinese automaker, is currently enjoying a positive response to its all-electric SUV, the BYD Atto 3, in the Indian market. However, while the spotlight is on their latest offering, BYD officials are encountering unexpected challenges behind the scenes. Recent reports suggest that several officials from BYD Auto have been facing difficulties obtaining Indian visas for their planned visits, prompting them to explore alternative locations for discussions.
Expansion Plans and Visa Troubles:
BYD Auto has been strategically positioning itself to expand operations in India, starting with the introduction of its first all-electric vehicle, the e6 electric MPV. Following the launch of the Atto 3 electric SUV, the company expressed its ambitions to establish an advanced production facility in India. To achieve this goal, BYD Auto has been in talks with Megha Engineering and Infrastructure Limited, an Indian firm.
Meetings Beyond Borders:
Unfortunately, it appears that Chinese officials from BYD Auto have faced difficulties obtaining Indian visas, prompting both parties to seek alternative venues for discussions. Meetings have taken place in neighboring countries such as Nepal and Sri Lanka to discuss their expansion plans for India. Megha Engineering and Infrastructure Limited have proposed a $1 billion joint venture with BYD Auto for local assembly of the Atto 3 and e6. However, final approval for this proposal is pending from the Indian government’s Department for Promotion of Industry and Internal Trade.
Unofficial Reasons for Visa Denials:
While no official reasons have been provided for the denial of Indian visas to BYD Auto officials, it’s important to consider the broader context. Since the tragic conflict in the Galwan region, where 20 Indian soldiers lost their lives, Chinese officials, citizens, and companies have faced increased scrutiny and stricter working conditions when operating in India. These unfortunate events have cast a shadow over Chinese companies’ operations within the country.
Challenges in the Auto Industry:
The challenges faced by BYD Auto in India are not unique. Other Chinese-based automakers, such as MG, have also encountered operational difficulties. MG, currently owned by SAIC, is actively seeking a new partner in India to acquire a major controlling stake in its Indian operations. This strategic move aims to ensure smoother operations and investments in India, as Chinese automakers navigate the evolving landscape of their operations in the country.
