India rejects $1B BYD proposal amidst 'security concerns'
investing.comThe Economic Times reported over the weekend that India has rejected Chinese automaker BYD's (OTC:BYDDY) proposal to set up a $1 billion factory in the country through a partnership with Hyderabad-based Megha Engineering and Infrastructure Ltd.
BYD submitted a $1B investment proposal earlier this month to build electric cars and batteries in India in partnership with a local company. However, India's Department of Commerce, Department for Promotion of Industry and Internal Trade sought opinions from other departments on the investment proposal.
«Security concerns with respect to Chinese investments in India were flagged during the deliberations,» the report quoted an Indian official as saying.
A BYD subsidiary, BYD India, was established in March 2007 and celebrated 16 years of operating in the country earlier this year.
According to BYD India’s website, the company has two factories in the country, with a cumulative investment of over $200 million. Its business covers mobile components, battery energy storage, and electric busses, trucks, and forklifts.
The company has over 2,000 employees in Chennai, with showrooms across 21 cities.
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