Chinese EV giant eyes India expansion as ties warm – Bloomberg
Chinese electrical vehicle (EV) maker BYD is looking to expand its operations in India, Bloomberg reported on Wednesday.
BYD’s India managing director, Ketsu Zhang, is likely to travel to the South Asian nation in the next couple of months, the media outlet reported, citing people familiar with the matter.
The carmaker, based in Shenzhen, has started obtaining visas for its top managers and engineers, which will allow the company to resume its training programs and maintain its equipment, according to the report.
When bilateral ties between New Delhi and Beijing soured in 2020, India put restrictive visa policies for Chinese citizens. These restrictions are gradually being eased as the Asian neighbors work towards better relations.
The Chinese EV maker also intends to obtain Indian regulatory clearance for roadworthiness, which would allow it to exceed the current annual import quota of 2,500 vehicles, Bloomberg reported.
During his visit, Zhang is scheduled to meet with officials from the Indian federal government in New Delhi. A few engineers have already been cleared to travel, and vice-president-level executives are expected to follow shortly, the report added.
The development comes in the wake of the meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Tianjin at the end of August. The two leaders agreed to move towards stabilizing relations, a culmination of months of efforts by both countries to restore ties strained by prolonged border tensions.
The thaw in relations between New Delhi and Beijing comes at a time when the US has imposed 50% tariffs on India.
The improvement in China-India ties is likely to provide BYD with a significant opportunity to establish a presence in the Indian market, following the rejection of its proposal to set up a manufacturing facility in the country in 2023, the Bloomberg report said.
