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BYD Weighs Local SKD Assembly in India to Navigate Tariffs and Import Limits

BYD is exploring SKD assembly to reduce duties in a market constrained by strict import limits.

Overview

  • Bloomberg reports BYD is assessing semi‑knocked‑down assembly in India to expand supply, with no formal investment decision or company comment disclosed.
  • The company is pursuing Indian safety and regulatory certifications for more models, adding to the Atto 3, Sealion 7, Seal and eMax7 already on sale.
  • India’s EV demand for BYD outpaced supply last year, with sales rising about 88% to roughly 5,500 vehicles and dealers holding hundreds of bookings as December‑quarter inventory ran out.
  • Fully built car imports are capped at 2,500 units a year and can face duties up to 110%; Atto 3 currently incurs about 70% duty, while SKD assembly could lower levies to near 30%.
  • India rejected BYD’s $1 billion full‑plant proposal in 2023, and local media report an Atto 2 launch in May is planned, which BYD has not confirmed.