Latest Car News in India

Union Commerce Minister Piyush Goyal has confirmed that Chinese electric vehicle (EV) manufacturer BYD will stop its operation in India "for now," due to strategic and regulatory concerns. Addressing the India Global Forum in Mumbai, Goyal told Bloomberg TV that India is alert about investments by neighbouring China. In the words of Goyal, “India has to be cautious about its strategic interests, who we allow to invest. As of now, it (BYD Co.) is a no,”.  This step by India comes at a time when it is looking forward to tying with US-based EV giant Tesla. Before this in 2024, the government of India had rejected a $1 billion investment proposal by BYD. Similarly, another Chinese automaker, Great Wall Motor Co., had also left the Indian market after the implementation of strong regulatory measures imposed by India. 

 

 

This statement by the union minister is taken as a reply to US President Donald Trump’s warning to impose an additional 50% import tax on Chinese goods unless Beijing withdrew its planned retaliatory tariffs by April 8. Despite India’s aim to become a global hub for electric vehicle manufacturing, high import tariffs by the government are restricting foreign manufacturers from investments. The strategy of imposing high tariffs on foreign manufacturers has stopped Tesla from entering India, whereas BYD cannot operate in the Indian market due to regulatory and geopolitical barriers for Chinese firms.

 

Comparatively, India’s EV tariff regime remains steep — far higher than the 2.5% import duty in the US, 10% in Germany, or 25% in China. These protective measures are considered as a way to encourage domestic manufacturers like Tata Motors and Mahindra & Mahindra. Both these domestic manufacturers dominate the EV segment in India with EVs available at cost-effective prices.  Indian automakers have opposed the policy of easing tariffs for foreign investors, wary that foreign brands could undercut them on pricing, especially as the government rolls out incentives to boost domestic EV production.Commenting on this Goyal said, “India has a lot of elbow room for trade deals with developed nations”. With India charting a cautious yet ambitious path toward clean mobility, the road ahead seems clearer for strategic allies — and less so for rivals.