Blocking BYD while courting rival Tesla? Piyush Goyal says ‘India has to be cautious…’

Union Commerce Minister Piyush Goyal has said that Chinese EV company BYD's entry in India “is a no” for now. Speaking to Bloomberg TV at the India Global Forum in Mumbai on April 6, the minister expressed caution over investments from China.

India Courting Elon Musk's Tesla, Blocking China's BYD? Piyush Goyal Says…

India is choosing to court Elon Musk's Tesla over Chinese rival BYD amid continued concerns regarding investments from the neighbouring country, according to the report.

“India has to be cautious about its strategic interests, who we allow to invest. As of now it (BYD Co.) is a no,” Piyush Goyal told Bloomberg.

In 2024, India rejected BYD’s $1 billion investment proposal with a local partner, while another Chinese carmaker Great Wall Motor Co. also exited India after failing to secure regulatory clearances.

Piyush Goyal’s statement came on a day when US President Donald Trump threatened to slap an additional 50 per cent import taxes on China if it doesn’t withdraw its planned retaliatory tariffs by April 8.

“India has a lot of elbow room for trade deals with developed nations,” Piyush Goyal said, adding that the country will be cautious about “dumping” from China, as per the report.

India's Auto Market Dominated by Domestic Players

India’s hardline posture also highlights a broader protectionist approach to car imports. With a 100 per cent duty on fully built vehicles — by far the highest among major economies — India has long shielded domestic players with steep tariffs. But with free-trade talks with the US and European Union gathering pace, pressure is mounting to open up the world’s third-largest auto market to foreign players.

India wants to be a global hub for electric vehicle production but high entry barriers — compared to 2.5 per cent for US, 10 per cent in Germany, and up to 25 per cent in China — serve as a detriment. Tesla has stayed away from India citing high tariffs while BYD has struggled to secure investment clearances, even as demand surges for affordable EVs and compact SUVs priced below $25,000.

That’s where India’s homegrown automakers such as Tata Motors Ltd. and Mahindra & Mahindra Ltd. thrive. The local automakers have resisted any tariff relaxation that might allow foreign rivals to undercut them on price, especially as the government ramps up incentives for EV production.

(With inputs from Bloomberg)