India Rejects BYD Co.'s $1 Billion Electric Vehicle Plant Proposal Over National Security Concerns

25 Jul 2023 , 11:27 AM

India rejects BYD Co.’s $1 billion electric vehicle plant proposal with Megha Engineering due to national security concerns. The use of Chinese homegrown technology in the project raises worries, leading to the rejection.

Foreign direct investments from countries bordering India require additional political and security clearances. The rejection reflects ongoing tensions between India and China, impacting business relations.

The Indian government has been cautious about Chinese investments following deadly border clashes. Similar incidents include Great Wall Motor Co.’s failed attempt to acquire a General Motors plant in India.

The government is yet to release an official statement on the matter.The Economic Times reported the rejection of BYD’s investment plan.

India continues to evaluate foreign investment proposals in its automobile sector to safeguard national interests and security.

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