BYD weighs India expansion as hundreds of car orders pile up

Published Wed, Jan 28, 2026 · 11:49 AM

[DELHI] BYD is weighing options to expand in India, including local assembly to meet surging demand for the Chinese automaker’s electric vehicles (EVs), according to sources familiar with the matter.

The company is evaluating some form of local assembly in India and working on obtaining local safety and regulatory certifications for more models because of import quotas, the sources said, asking not to be identified because the plans have not been publicly disclosed.

Though India previously rejected BYD plans to build a full assembly plant in the country, the Chinese company is considering putting together semi-assembled parts, which would be cheaper and easier to clear in terms of regulatory approvals, the sources said. Any manufacturing move would follow a visit by senior BYD executives, they added.

Strong demand is prompting the automaker to reassess ways to bring more cars in the country, the sources said, adding that dealers were sitting on hundreds of bookings. This is in sharp contrast to Tesla, which has been offering discounts on some variants to boost sales in India.

The discussions highlight both the opportunity and the regulatory hurdles BYD faces in one of the world’s fastest-growing auto markets. They also reflect a strategic shift for the Chinese carmaker, which is now doubling down in India, despite New Delhi’s pushback in the past to its investment proposal during a period of heightened scrutiny of Chinese firms. Ties between India and China have somewhat thawed since last year as both nations faced steep tariffs levied by the US.

A spokesperson for BYD did not respond to an e-mail seeking comment on its India plans.

Diversifying beyond China has become increasingly important for BYD as growth slows at home amid reduced EV subsidies and intensifying competition. It’s aiming to increase deliveries to markets outside China by nearly 25 per cent this year.

BYD’s India sales jumped about 88 per cent last year to roughly 5,500 cars, straining its ability to operate under rules that cap imports of each fully built model at 2,500 units. That growth came despite import duties of up to 110 per cent on fully built cars, driven by a price tag that’s relatively lower than Tesla’s. Using SKD assembly would slash tariffs to 30 per cent from 70 per cent.

The company sells the Atto 3 compact e-SUV and the eMax7 multipurpose vehicle in India, both approved for imports beyond the 2,500-car quota, along with the Sealion 7 and the Seal sedan.

Undercutting Tesla

The Atto 3 starts at 2.5 million rupees (S$34,470) even with a 70 per cent import tariff. That puts it at the premium end of India’s mass-market EV segment alongside Mahindra & Mahindra and Tata Motors Passenger Vehicles, while still undercutting Tesla. The Sealion 7, which sold 2,200 units in India last year, is priced between 4.9 million rupees to 5.5 million rupees – below Tesla’s Model Y, which starts at six million rupees.

The automaker has approached Indian auto sector regulators to flag how import limits could constrain growth. Most inventory in the December quarter has been sold out, the sources said, unlike Tesla, which continues to struggle against the same tariff barriers.

Despite a tentative thaw between Chinese President Xi Jinping and Indian Prime Minister Narendra Modi that led to the resumption of direct flights, policy support remains inconsistent.

Some BYD executives, including engineers and senior managers, have been visiting India since last year. But senior BYD executives who had planned visits last year have since delayed their travel, the sources said, without giving more details. BLOOMBERG