BYD is considering expanding its footprint in India, including the possibility of local vehicle assembly, as strong demand and import restrictions constrain sales, Bloomberg reported on Wednesday, citing people familiar with the matter.
The Chinese new energy vehicle (NEV) manufacturer is evaluating options for assembling vehicles locally while seeking safety and regulatory approvals for additional models, the sources said. India currently imposes strict import quotas, limiting automakers to 2,500 units per model, which has become increasingly challenging for BYD as sales rise.
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India had previously rejected BYD’s proposal to build a full-scale vehicle manufacturing plant. However, the company is now assessing the feasibility of assembling semi-knocked-down (SKD) kits, a lower-cost approach that may be more likely to secure regulatory clearance, according to the report. Any production plans would follow recent visits by BYD executives to the country, the sources added.
Rising consumer interest has prompted BYD to reassess how it supplies the Indian market, where dealers are holding hundreds of bookings, Bloomberg reported, citing “surging demand” for the company’s vehicles.
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BYD’s sales in India rose by about 88% in 2025 to roughly 5,500 units, the report said, putting pressure on the existing import quota framework. Despite import duties that can reach as high as 110%, the company has been able to grow volumes, supported by pricing that undercuts rivals such as Tesla, Bloomberg reported. An SKD assembly route could lower tariffs to between 30% and 70%, depending on localisation levels, the report added.
BYD currently sells four electric models in India, including the eMax 7 MPV, the Seal sedan, the Atto 3 SUV and the Sealion 7. The Atto 3 is marketed as the Yuan Plus in China, while the Sealion 7 corresponds to the Sealion 07 in the domestic market.