Centre rejects Megha-BYD’s $1 billion plan for four-wheeler facility – EQ Mag

BYD, the world’s largest electric vehicle maker by sales, in its proposal had pitched to manufacture 10,000-15,000 electric cars a year.

The Centre has reportedly rejected Chinese automaker and battery maker BYD Motors’ proposal to set up a $1 billion four-wheeler manufacturing facility in Hyderabad by joining hands with Megha Engineering and Infrastructures Ltd (MEIL), The Economic Times reported on Saturday.

Earlier this month, BYD and Megha Engineering and Infrastructures had submitted a proposal to the Department for Promotion of Industry and Internal Trade (DPIIT) for the same.

Following this, the DPIIT had sought views from other government departments on the investment proposal.

“Security concerns with respect to Chinese investments in India were flagged during the deliberations,” an official told ET.

Another official said: “Existing rules in India do not allow such investments.”

BYD, the world’s largest electric vehicle maker by sales, in its proposal had pitched to manufacture 10,000-15,000 electric cars a year. Megha Engineering and Infrastructures is a Hyderabad-based infrastructure company that has been involved in the construction of roads, bridges, and power plants.

Megha was putting up the capital while BYD was putting in technology and know-how.

The Centre has set a target of achieving 30 per cent electric vehicle sales by 2030, and has announced a number of incentives to promote the adoption of electric vehicles.

The investment proposal also included a plan by BYD and Megha to set up charging stations in India and build research and development and training centres.

BYD already has a presence in India, where it sells the Atto 3 electric SUV and the e6 electric sedan to corporate fleets. The company plans to launch its first electric car for the mass market in India in 2023.

In April 2020, the Narendra Modi-led government changed its foreign direct investment (FDI) policy, making government approval mandatory for investments coming from countries it shares land-border. A committee headed by the home secretary decides on such proposals.

BYD previously said it planned to set up manufacturing in India, which is now the world’s third-largest car market. With the proposal, the company will be directly competing with Tesla, which still leads in sales of EVs in the global market.