By Chinese electric vehicle manufacturer BYD (Build Your Dreams) is facing significant challenges in establishing a strong presence in the Indian market. Despite its aspirations to make a mark in the country, BYD appears to be on track to miss its 2023 India targets by a substantial margin, with estimates suggesting a 70 to 80 percent shortfall. In 2022, BYD managed to sell approximately 2,000 units in India. The company’s Indian portfolio includes the e6 MPV and the Atto 3 electric SUV.
However, the Atto 3, a key offering, has been plagued by delays, including difficulties in obtaining the necessary homologation certificates. As a result, both the localised version of the Atto 3 and the imported Seal high-performance electric sedan, originally scheduled for a 2023 launch, have now been pushed back to 2024. BYD’s challenges in India were further compounded when the government’s Directorate of Revenue Intelligence imposed a $9 million fine on the company for underpaying taxes. According to a Reuters report, BYD had failed to meet the conditions required to benefit from lower tax rates, leading to a substantial penalty.
Despite these setbacks, BYD remains committed to its Indian expansion plans. A source close to the company emphasized that the focus on India has not diminished and that aggressive plans are in place for 2024. BYD is confident in its prospects for the future once homologation issues are resolved. Looking ahead, BYD is actively working on obtaining a homologation certificate for the Atto 3 by November 2023. By 2024, the company aims to offer two versions of the SUV, one with an advanced motor. Additionally, BYD will continue to market the e6 and the new Seal in India.
While BYD has faced challenges in accelerating its Indian operations, it maintains a strong position in the Rs 30 lakh-50 lakh segment, outperforming Hyundai and Kia. The brand’s demand in India remains robust, with supply chain issues being the primary obstacle to realizing its full potential in the country. India is a critical component of BYD’s international growth strategy. BYD had plans to ramp up assembly at its Chennai facility, which has an annual production capacity of around 20,000 vehicles. Moreover, discussions have been ongoing with alliance partner Megha Engineering and Infrastructures Ltd (MEIL) for local manufacturing, with proposals already presented to the government. Despite the challenges, BYD anticipates growth in 2023, with sales projected to reach 2,500 units, representing a 20-25 percent increase over the previous year.
