BYD Encounters Obstacles In India Expansion: Report

BYD is reportedly pushing forward with its plans to grow its presence in India, despite government-imposed barriers that hinder critical business activities with Chinese companies. 

Following a border clash with Chinese troops in 2020, political tensions have led to visa denials for BYD executives, forcing the firm to hold board meetings and key discussions in Colombo, Kathmandu, and even Singapore, as per insiders.

Executive Challenges

Ketsu Zhang, BYD’s India managing director, has been unable to secure a work permit since leaving the company’s Chennai base. Despite government attempts to ease his travel, Zhang, who shifted from Shenzhen to Tokyo in 2021 and now oversees Asian markets including India, remains unable to return. 

An on-site presence is vital for swift decisions, tackling productivity issues, and building local connections, yet these efforts are stalled.

In March, India scaled down a delegation to a BYD dealer meeting in Shenzhen after visa rejections for most participants, including local staff. A BYD India spokesperson refrained from commenting.

Despite this, the company has gained traction among Indian drivers, with first-half 2025 sales nearing last year’s total.

Investment Blocked

Indian authorities, led by Commerce Minister Piyush Goyal, have firmly rejected BYD’s $1 billion proposal to set up a plant with a local partner, citing strategic concerns. This bars BYD from enjoying reduced EV import tariffs tied to local manufacturing. 

Meanwhile, US-based Tesla has made strides, with CEO Elon Musk meeting Prime Minister Narendra Modi earlier this year, and showrooms opening this month for August deliveries, despite facing 110 per cent import duties without local production.

Though China-India tensions are easing, with tourist visas for Chinese nationals recently allowed, it remains uncertain if professional visa restrictions will be lifted or if BYD will be fully embraced. 

The company’s future in India hinges on resolving these diplomatic and regulatory hurdles.

Also read: VinFast Opens First India Showroom in Surat; 35 Dealerships Coming by 2025 End