In a blow to the Chiese EV vehicle manufacturer, India rejected Chinese carmaker BYD Co.'s proposal to build a $1 billion electric-vehicle plant in partnership with a local company, according to people with knowledge of the matter.
The government dismissed the plan from BYD and Hyderabad-based Megha Engineering and Infrastructures Ltd. on national security concerns, the people said, asking not to be identified as the decision is not yet public. The use of Chinese homegrown technology is a concern with the Indian policymakers, one of the people said.
Foreign direct investment in India's automobile sector doesn't typically require approval. Investment proposals from countries that share a border with India, however, need political and security clearance from the ministries of external and home affairs.
Meanwhile, the government is keen to proceed with the Tesla EV proposal, it was indicated during PM Modi's US visit and the meeting with Elon Musk. ,