Why did India’s Govt reject BYD $1 Billion investment?

BYD, the world’s largest TV company the EV company which beats Tesla. The company which brings innovation in Battery Technology. The world’s largest EV

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a company famous for electric cars BYD made a proposal to make a one billion dollar investment in India. 

 But the Indian government trashed the proposal of a BYD company. Why the Indian government denied the BYD proposal.

 BYD this Chinese company started as a battery manufacturer for cell phones in 1995. After 28 years the company became the world’s largest TV company. This success does not come overnight.

 BYD started its Journey as battery manufacturer for Brick size cell phones in 1995 and captured half of the cell phone battery market after 13 years in 2003. BYD entered into car manufacturing initially. 

BYD failed with the 316 car and lost 100 crores of money. But in 2005 BY launched the F3 car with lowest price and become successful in 2008. BYD is the first  company to make a plug-in hybrid car. The F3DM in December 2008.  

F3DM has two electric motors, one primary electric motor that drives the wheel and another second remoter that powers the wheel via regenerative braking.  This car offers a maximum range of 480 kilometers in the hybrid mode.  

Later in 2009 BYD made their first electric car byd E6 a notable point. One of the world’s richest manbWarren Buffett invested in BYD in 2008 not in Tesla. He acquired a 10 percent stake in BYD. It  shows the potential of the company with almost 6 lakh cars sold in 2021. 

BYD owns 9.1 percent of the global electric car market behind Tesla with 14.4 percent in 2020 to the first quarter. 

BYD beat the number one electric vehicle maker in the world Tesla.  Tesla Sold 5 lakh 64,000 cars into 2022 and BYD sold 6 lakh 41,000 cars. Most importantly, BYD is famous for electric buses.

 The company’s first electric bus K series launched in September 2010 with a range of 250 kilometers. This electric bus can be seen in Europe, the United States of America, China and even on Indian roads. 

As well in Battery Technology BYD brings many Innovations for example the Blade batteries.the blade batteries are safer during the testing. The Blade battery emitted no smoke or fire after being penetrated.  These batteries offer up to 600 kilometers of range.

 The CATL  developed sodium ion batteries. This is how BYD is ruling the Chinese EV Market. It is also the old eBay market. 

CATL battery
CATL battery

Now the question is why the Indian government said no to BYD one billion dollar investment a few weeks ago. BYD along with hyderabad-based mega engineering and infrastructures limited made a proposal to Indian government to set up an electric car manufacturing unit along with a battery manufacturing unit with an estimated valuation of 1 billion dollars.

  Now the Indian government blocks the deal. The main reason is Chinese homegrown technology is a concern according to top media reports. The reports also suggest that security concerns over Chinese Investments could be the reason behind India’s blocking. 

 The deal is BYD deal an advantage for existing EV companies in India. Currently India is not making indigenous lithium and battery sales.  They are relying on China

but recently log in materials started lithium and cell Manufacturing in India and also all electric making lithium and cell manufacturing as a part of PLI scheme.  

Automotives created Wonders by selling 50,000 electric cars in India if BYD enters in India. It  offers a budget electric car.  It will affect the homegrown electric car industry and this is on the negative side. 

Read more:BYD unveils Yangwang U9 supercar in China

But on the positive side byd can offer cheaper electric cars to Indian market also battery prices can be cheaper as the company producing Lithium-ion batteries on a larger scale.

  Finally, one thing our country’s safety is more important for safety. Our government took any decision, we need to support that.

Read more:Tesla aims to set up  gigafactory in India for affordable electric car at Rs 20 lakh

Hi, I am a blogger. I am working about 2 years. I share electric vehicles news and updates.

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