India and China have become sweet for the last few weeks. Chinese companies have started making efforts to capitalize on these sweet relationships. According to the information, China’s largest company byd is preparing to take a fresh step in India. In diplomatic relations, the way has been cleared for BYD to come to India. After operating from five years away, by relaxing bilateral travel restrictions, India MD Katsu Zhang will be able to travel to the South Asian country in the next few months. Bloomberg’s report quoted sources as saying that the Chinese company has started getting a visa for senior managers and engineers, so that the company will be able to start training programs, serve machinery and assess the status of its factory in South India.
Tata and Mahindra collide
Also, the world’s largest EV vendor is considering launching its Eto 2 compact electric SUV in India early next year, which will be the cheapest car of the car manufacturer in the country and will be a direct challenge for local mass-market companies like Mahindra & Mahindra Limited and Tata Motors Limited. By the way, no official statement has come from Byd in this case. India’s restoration of commercial visa for Chinese travelers will give BYD an opportunity to increase its presence in the country. Which until a few months ago did not see this at all possible. Now by this diplomatic agreement, byd is expected to get a great opportunity to strengthen its position in the Indian market. In 2023, his proposal to set up a manufacturing center in the country was rejected.
The price of the car will be so much
Despite 70 per cent local fees being imposed on imported cars, byd has planned to keep the price of ATTO 2 much less than Rs 20 lakh ($ 22,690), which reflects the increasing competition in the big market sector. Winfast Auto Limited announced the launch of its compact SUV VF6, which is its cheapest model in India last week at an initial price of Rs 16 lakh. Byd already sells four models including ATTO 3 in India and is the fourth largest electric car manufacturer in India in terms of sale. According to sources, the company is also planning to obtain local regulatory approval for the ability to walk on the road, so that it will be able to import more vehicles than the existing quota of 2,500 cars per year.
Company officials will come to India soon
According to sources, during his visit, Zhang is expected to meet the Government of India officials before inspecting the Passenger Vehicle plant in New Delhi. He further informed that in recent weeks, some engineers have got permission to travel and the officials of Vice President level are also expected to come soon. One of the sources said that other senior officials of BYD will apply for a visa in the next few weeks.
Xi said that friendship is ‘correct choice’
However, after the confrontation on the border in 2020, India-China relations had come to a standstill. In the last few months, such unexpected incidents happened due to which both countries once again stood on a platform. One, both countries were very upset due to the tariff of Trump. Also, China had stopped supply of rare economy metals. Due to which the auto sector of India was facing a lot of difficulties. India and China had agreed to resume direct flights after a gap of more than five years last month. Chinese President Xi Jinping met Indian Prime Minister Narendra Modi in August – this was his first meeting after US President Donald Trump returned to the White House – and Xi told Modi that he should not define his relations in border disputes. Xi said that the “right choice” has to be a friend.
The company wants to increase its market in India
People aware of this matter said that after the leaders’ meeting, byd told his dealership in India on the phone that they see improvement in relations between the two countries. He said that Zhang was also invited by the Indian Embassy in China to attend India’s Independence Day celebrations on 15 August. Bloomberg’s report quoted a source as saying that BYD would be immediate attention to assess the market conditions, its existing factory status and India’s viability to increase its stake in passenger and heikal business. A source in the report said that the executive officer can later consider proposals related to the battery pack assembly and there is no plan to announce any new investment during the initial visits.