BYD intends to use the homologation method, rather than the new EV policy, to meet the demand for its high-volume models introduced in India.
The Chinese electric car manufacturer- BYD has announced that it will not seek benefits under India’s new electric vehicle (EV) policy shortly. This program which was rolled out earlier this year, attempts to entice foreign firms to set up shop in India.
BYD’s Homologation Strategy
Rajeev Chauhan, BYD India’s Head of Electric Passenger Vehicles Business, revealed on Tuesday that the company intends to use the homologation method to meet demand for its high-volume models in India. This statement comes as BYD introduces its new all-electric multipurpose vehicle, the eMAX 7, which is priced between Rs 26.9 lakh and Rs 29.9 lakh.
Chauhan’s Policy Analysis
Chauhan stated that BYD representatives thoroughly examined the new policy and figured that the company was not yet ready to implement it. “We’ve determined that, no, we’re not ready to adopt this policy in the short term. “So, we’re not applying,” he said. While admitting the benefits of having a manufacturing factory, Chauhan stated that BYD India has not yet reached that stage. He declined to remark on the potential challenges posed by India-China geopolitical tensions.
Policy Overview
The Indian government’s new EV policy, which was announced in March, aims to attract huge multinational businesses such as Tesla by allowing them to import a limited number of cars at a 15% customs fee for vehicles priced at USD 35,000 or more. This arrangement is valid for five years from the date the government issued its consent letter.
Investment and Production Requirement
To qualify for the advantages, qualified applicants must develop production facilities in India with a minimum investment of Rs 4,150 crore (USD 500 million) in electric four-wheelers. Furthermore, these facilities must be operational within three years of approval and produce a domestic value addition (DVA) of at least 25% within the same period, growing to 50% over five years.
The Import Limits
The program permits enterprises to import completely built units (CBUs) of their electric four-wheelers at a reduced customs charge, with a maximum of 8,000 units per year. Unused annual import limits may be carried forward.
BYD’s Marketing Strategy
Chauhan elaborated on BYD’s short-term plan: “We will look into the market thoroughly for gaps and opportunities.” We shall file for homologation where we feel the opportunity is more than what the government has put in the lot. Homologation is the certification of the cars to a set roadworthiness standard laid down in the various regulatory requirements.
Upcoming BYD Models
Currently, BYD India is in the process of bringing in the new eMAX 7 and SEAL Sedan under the European Economic Commission (EEC) vehicle certification laws which have a limit of 2,500 vehicles only.
BYD’s Long-Term Vision
Chauhan emphasized that the company’s short-term strategy does not include industrial investments and that future developments will necessitate patience. “The eMAX 7 represents our everlasting dedication to innovation and sustainability. He further added, “We will always be committed to bringing the most recent global innovation to our discerning Indian consumers”. The new vehicle is offered in two sizes, accommodating six and seven passengers.
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