BYD is reassessing its India strategy, including considering local assembly, as surging demand and import limits constrain the Chinese electric vehicle maker’s growth in the country.
The company is evaluating semi-knocked-down (SKD) assembly and pursuing safety and regulatory approvals for more models because quotas are constraining growth, Bloomberg reported citing sources.
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India had earlier turned down BYD’s plan for a full manufacturing facility, but assembling SKD kits could prove cheaper and easier to clear with regulators, the report said.
Any decision on manufacturing would follow visits by senior executives, the report added.
Strong sales momentum has triggered the review, with dealers reportedly holding hundreds of bookings.
The situation contrasts with Tesla, which has been offering price reductions on some Indian variants to lift demand.
For BYD, overseas expansion is growing in importance as domestic demand softens, subsidies decline and competition intensifies.
The company is targeting almost 25% growth in deliveries outside China this year.
Sales in India climbed about 88% last year to roughly 5,500 vehicles, stretching operations under rules that cap imports of each fully built model at 2,500 units.
Fully built cars face duties of up to 110%, while SKD assembly could cut tariffs to 30% from 70%.
Sources said BYD has approached Indian regulators to flag that import ceilings could curb further growth, noting that most inventory in the December quarter sold out, unlike Tesla, which continues to face similar duty barriers.
Earlier this month, Ford and BYD held talks over a possible battery supply arrangement for some of Ford’s hybrid vehicles.
The potential arrangement came as the US carmaker reduced the scale of its electric vehicle (EV) programme while increasing its focus on hybrids.
