The BRICS TimesChina’s largest EV manufacturer BYD is preparing to expand in India. The company has started applying for visas for its executives and is planning to launch its most affordable car next year, marking a new chapter in India-China business ties.
Warming Ties Open New Doors for Auto Industry
In recent weeks, relations between India and China have shown visible improvement. Chinese companies are now trying to seize this opportunity to strengthen their presence in India. Among them, China’s biggest electric vehicle maker, BYD, is actively preparing to restart its India journey with fresh expansion plans. Improved diplomatic engagement has paved a smoother path for the company to re-establish itself in the country.
After operating remotely for almost five years due to travel restrictions, BYD’s India Managing Director Ketsu Zhang is now expected to visit the South Asian nation within months. According to Bloomberg reports, the automaker has begun securing visas for senior managers and engineers, allowing them to restart training sessions, service key machinery, and assess the condition of its facility in southern India.
BYD to Challenge Tata and Mahindra
The world’s top EV seller is considering the launch of its Atto 2 compact electric SUV in India early next year. This model will be the company’s cheapest offering in the country and will directly compete with homegrown automakers like Tata Motors and Mahindra & Mahindra in the mass-market segment.
Though BYD has not issued any official statement yet, India’s decision to restore business visas for Chinese professionals gives the company a rare chance to strengthen its foothold. Just a few months ago, such a prospect seemed unlikely. The recent diplomatic developments, however, have renewed hopes for BYD to grow in the Indian market, especially after its earlier proposal to set up a local manufacturing hub was rejected in 2023.
Affordable Pricing Amid Growing Competition
Despite India’s heavy 70% import duty on foreign vehicles, BYD plans to keep the price of Atto 2 significantly below ₹20 lakh (approx. $22,690). This aggressive pricing signals its intention to compete in the fast-expanding EV segment.
Vietnam’s VinFast Auto recently announced the launch of its compact SUV VF6 at a starting price of ₹16 lakh, making the EV competition in India even tighter. Currently, BYD already sells four models in the country, including the Atto 3, and ranks as India’s fourth-largest EV maker by sales.
Sources also suggest that BYD is pursuing regulatory approvals for road-use clearance, which could allow it to import more vehicles beyond the present annual limit of 2,500 units.
Company Officials to Visit India Soon
Reports indicate that during his visit, Zhang will meet Indian government officials before inspecting BYD’s passenger vehicle facility in New Delhi. Some engineers have already received travel clearance, and vice-president-level executives are also expected to arrive shortly. Other senior officials will reportedly apply for visas in the coming weeks.
Xi Jinping’s “Right Choice” Remark Strengthens Trust
India-China ties had soured after the border clashes in 2020, but unexpected developments have brought the nations closer again. Both countries faced challenges due to tariffs imposed by former U.S. President Donald Trump and China’s suspension of rare earth metal supplies, which created hurdles for India’s auto sector.
Last month, the two countries resumed direct flights after more than five years. Chinese President Xi Jinping met Indian Prime Minister Narendra Modi in August—his first meeting with Modi since Trump’s return to the White House. Xi told Modi that border issues should not define their relationship and added that “the right choice is to remain friends.”
BYD Eyes Stronger Market Presence in India
Insiders reveal that following the leaders’ meeting, BYD contacted its Indian dealers and noted clear improvements in bilateral relations. Zhang was even invited by the Indian Embassy in China to attend India’s Independence Day celebrations on August 15.
Bloomberg quoted a source stating that BYD’s immediate priority will be assessing market conditions, evaluating the state of its existing plant, and exploring ways to expand its passenger vehicle business in India. The company may later examine proposals for battery pack assembly, but no new investment announcements are expected during the initial visits.
