BYD delays India launch of SEAL and locally-produced Atto 3
Chinese EV maker Build Your Dreams or BYD is reportedly encountering numerous obstacles in India. These issues may cause the company to fall short of its 2023 sales targets by 70% to 80%. Autocar Professional has revealed that the carmaker has experienced product delays and difficulties in obtaining homologation certificates for its capable Atto 3 model. Both the locally-produced Atto 3 and the high-performance SEAL electric sedan have had their launches postponed to 2024.
The automaker is ramping up its facility for localized production
Initially, BYD intended to increase assembly at its facility near Chennai, which has an annual production capacity of approximately 20,000 vehicles. The company has also been in talks with alliance partner Megha Engineering and Infrastructures Ltd (MEIL) regarding local manufacturing, having already submitted a proposal to the government. Despite these challenges, BYD continues to dominate the Rs. 30 lakh to Rs. 50 lakh segment in India.
It awaits homologation certificate for its Atto 3 electric SUV
BYD is on track to secure a homologation certificate for its Atto 3 in November. Moreover, the EV maker plans to offer the e6 MPV and the all-new SEAL electric sedan. By 2024, the company aims to launch two distinct versions of the e-SUV: the existing model and a new one equipped with an advanced motor. A BYD official stated, "The focus on India has not waned in any way, it has, in fact, gotten even more active."
Tax penalty was a major financial setback for BYD
Earlier in the year, BYD was slapped with a $9 million fine by India's Directorate of Revenue Intelligence for underpayment of taxes, as reported by Reuters. The automaker failed to meet the necessary criteria to qualify for reduced tax rates, resulting in a liability of either 70% or 100% based on the vehicle's value. This financial setback may have hindered BYD's growth plans in India. Nevertheless, the company remains committed to reaching its targets in 2024.
