Chinese electric vehicle (EV) manufacturer BYD Co. Ltd. is managing its India operations remotely, as diplomatic tensions between India and China continue to prevent the company’s senior executives from entering the country. The development comes amid growing demand for electric vehicles in India and intensifying competition from global players like Tesla.
Following the 2020 Galwan Valley clash, India has maintained strict visa controls on Chinese nationals, including business executives. As a result, BYD’s top brass, including Ketsu Zhang, the company’s India Managing Director, have been unable to return to the country. Zhang now operates out of Tokyo, overseeing BYD’s broader Asian operations, including India.
Board Meetings Held Outside India
Due to visa denials, BYD has been forced to hold critical internal meetings and board-level reviews in alternative locations such as Kathmandu, Colombo, and Singapore. According to sources, this remote approach has disrupted day-to-day decision-making, weakened coordination with Indian partners, and delayed business expansion.
Sales Surge Despite Barriers
Despite the management challenges, BYD has seen robust growth in India. The company’s EV sales in the first half of 2025 have nearly matched its full-year sales from 2024. Vehicles are being assembled at BYD’s Chennai-based facility, which has an annual capacity of 10,000 to 15,000 units.
However, without full-scale local manufacturing or deeper market integration, BYD’s future expansion in India remains constrained.
Investment Proposals Rejected
In 2023, BYD proposed a $1 billion joint venture in India to manufacture EVs, a move that was firmly rejected by the Indian government. Union Commerce Minister Piyush Goyal reiterated that India does not trust China’s investment intentions due to national security concerns.
“India is open to business, but not at the cost of its strategic interests,” Goyal stated in a recent interview. The rejection means BYD cannot access favourable import tariffs or government EV incentives, limiting its competitiveness against other global EV manufacturers.
Tesla Advances, BYD Struggles
In contrast, Tesla, BYD’s American rival, has entered India with fewer roadblocks. The company recently opened its first showroom in Mumbai and is preparing for deliveries. Though Tesla’s imported EVs face tariffs of up to 110%, the brand enjoys smoother regulatory interactions compared to BYD.
Tesla has yet to announce any local manufacturing plans, but its favourable reception underscores the differential treatment of Chinese and non-Chinese firms in India’s automotive space.
Uncertain Road Ahead
While there have been diplomatic overtures between New Delhi and Beijing in recent months, the road ahead for Chinese investments in sensitive sectors like automotive remains unclear. BYD continues to operate via local staff and contractors but lacks senior leadership presence in India.
For now, India’s fastest-growing EV player is navigating the market remotely, without direct access to the boardroom, the factory floor, or key policy dialogues.
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