BYD, the Chinese electric vehicle manufacturer, entered the Indian passenger vehicle market with high expectations. After dominating in global markets with battery technology and a vertically integrated production model, India was their next logical step. BYD typically thrives by offering affordable EVs at scale. However, its positioning in India has not followed the same playbook. The brand, while active, remains a marginal player in a market it once viewed as a major opportunity.
Limited Lineup, Targeted Strategy
BYD began Indian operations in 2007 but only entered the passenger car space in 2022 with the e6 MPV and later, the Atto 3 SUV. Both models are positioned as premium electric options. The e6 is primarily aimed at fleet operators, while the Atto 3 targets private buyers in the Rs 30–35 Lakh bracket.
This pricing strategy immediately placed BYD outside the mass-market EV segment. While Tata Motors pushed volumes with the Tiago EV and Nexon EV, BYD was simply priced higher. This resulted in limited reach and relatively low volumes. In most international markets, BYD’s vehicles are positioned as affordable alternatives to legacy automakers. The company leans heavily on economies of scale, with in-house battery manufacturing and a vertically integrated supply chain to keep costs down. In China, Southeast Asia, and parts of South America, its models undercut rivals in price.
In India, however, BYD’s cars arrive via the SKD or CBU route. This has shifted the brand’s positioning entirely. Vehicles like the Atto 3 and e6, priced in India between Rs 29 Lakh and Rs 35 Lakh (ex-showroom), land in the premium bracket by default. In other markets, these same vehicles are BYD’s volume sellers.
Sales Data Reflecting A Plateau
BYD sold around 1,000–1,200 units per quarter in 2023. Its total annual sales stood at under 5,000 units, a figure dwarfed by Tata’s EV sales, which crossed 50,000 in the same period. The Atto 3, launched with fanfare, averaged just over 300–400 units per month by mid-2024. BYD has also not expanded its product portfolio aggressively, which has kept it in a narrow niche.
Its commercial fleet-focused e6 did see early adoption by companies like BluSmart and Lithium Urban Tech, but this too has plateaued.
Regulatory Pressures And Market Constraints
In July 2023, the Indian government moved to scrutinise investments from Chinese companies more closely. BYD’s proposed Rs 8,000 crore investment in an India plant was put on hold as a result. This lack of a local manufacturing facility means BYD continues to import its vehicles via the SKD route, attracting high duties.
The brand has also faced difficulty building a dealer and service network at scale, which limits reach beyond major metros.
Conclusion
With no products under Rs 20 Lakh, BYD restricts itself to an already tiny part of the Indian market, an even smaller part of which is interested in EVs. Without breaking into the affordable and budget segments like Tata & MG, BYD doesn’t have much room to grow. BYD in India has become a premium, low-volume brand, more due to government constraints than intent.
