BYD's Expansion in India Hindered by Visa Issues and Government Restrictions

BYD, China's largest electric vehicle maker, is facing roadblocks in India due to visa issues for executives following a deadly border clash between Indian and Chinese soldiers in 2020. Despite this, BYD has seen popularity with Indian drivers, with sales in the first half of this year nearly reaching the total units sold in 2024. Indian officials have expressed caution around BYD's investment, with Commerce Minister Piyush Goyal stating that it's a "no" to BYD due to strategic interests. BYD's $1 billion plan to build a plant in partnership with a local company has been rejected, leaving the company unable to qualify for reduced tariffs on imported EVs.

China's largest electric vehicle (EV) maker, BYD, is encountering significant challenges in India due to ongoing visa issues for its executives. The company's expansion plans have been hampered by a deadly border clash between Indian and Chinese soldiers in 2020, which has led to a deterioration in political ties. Despite these obstacles, BYD has seen growing popularity among Indian drivers, with sales in the first half of this year nearly reaching the total units sold in 2024 [2].

The company has been unable to conduct key business dealings in India due to visa restrictions, forcing it to hold board meetings and high-level business interactions in Colombo, Sri Lanka, Kathmandu, Nepal, and even Singapore [2]. Ketsu Zhang, BYD’s managing director for India, has been unable to obtain a work permit since he left the EV maker’s local base in Chennai [2].

Indian officials have been cautious about welcoming BYD’s investment, with Commerce Minister Piyush Goyal stating that it's a "no" to the company due to strategic interests [2]. BYD's $1 billion plan to build a plant in partnership with a local company has been rejected, leaving the company unable to qualify for reduced tariffs on imported EVs [2].

BYD has been focusing on its assembly plant in Chennai, which has an annual capacity of 10,000 to 15,000 units, to meet Indian demand [2]. However, the company also imports most cars it sells in India, with hefty duties effectively doubling the cost of a vehicle and restricting volumes unless a model has received a local roadworthiness certificate [2].

Despite the operational difficulties, BYD has proved popular with Indian drivers, with sales in the first half of this year nearly touching the total units sold in 2024 [2]. The company is targeting a 30-35% share of the EV and plug-in hybrid car segment in Pakistan, where it plans to roll out its first car assembled in Pakistan by July or August 2026 [1].

In contrast, Tesla Inc. has been more successful in India, opening its first showrooms and setting deliveries to begin as early as August [2]. Tesla does not have plans to establish local manufacturing, meaning it faces import taxes of as much as 110% for fully-assembled vehicles [2].

Vietnamese EV maker VinFast has also entered the Indian market, opening its first showroom in Surat, Gujarat, ahead of launching a local manufacturing plant in Tamil Nadu [3]. VinFast plans to launch 35 dealerships by year-end, across 27 plus cities [3].

The Indian EV market is rapidly growing, with electric passenger vehicle sales rising from just 5,000 units in 2020 to over 113,000 in 2024 [3]. The central government’s ambitious goal to increase the share of EVs to 30% by 2030 underscores the sector’s tremendous potential [3].

References:
[1] https://www.reuters.com/sustainability/boards-policy-regulation/chinas-byd-assemble-evs-pakistan-2026-2025-07-24/
[2] https://www.bloomberg.com/news/articles/2025-07-28/byd-runs-india-remotely-as-china-tensions-shut-out-top-brass
[3] https://economictimes.indiatimes.com/industry/renewables/vietnamese-ev-maker-vinfast-opens-first-showroom-in-india-ahead-of-plant-inauguration/articleshow/122933667.cms?from=mdr