Chinese electric vehicle maker BYD is looking at the option of setting up local assembly operations in India, as rising demand for its cars runs up against strict import limits and supply constraints. As reported by Bloomberg, people familiar with the matter have indicated that the company is evaluating semi-knocked-down (SKD) or similar assembly routes to assemble its electric cars in India.The development comes after India had earlier turned down BYD’s proposal to set up a full-scale manufacturing facility, citing concerns around Chinese investments. With that route closed for now, local assembly of semi-finished components is emerging as a more practical option. Compared to a full factory, SKD assembly requires lower investment and is seen as easier to navigate from a regulatory standpoint.
Demand for BYD’s electric vehicles in India has grown sharply, putting pressure on existing import limits. The report further said that the dealers are sitting on hundreds of bookings, with a large part of the December quarter’s inventory already committed to customers. BYD’s India sales rose by around 88 per cent last year to nearly 5,500 units. However, growth has been held back by high tariffs and import quotas. Shifting to local SKD assembly could significantly ease this constraint, potentially lowering import duties. Such a move would also give the company greater flexibility on pricing and volumes.At present, BYD sells the Atto 3 electric SUV and the eMax7 MPV in India, both of which have received approvals to be imported beyond the standard quota of 2,500 units. Its lineup also includes the Sealion 7 and the Seal electric sedan.
