BYD faces a roadblock in India — just as Tesla tries to expand in the world's 3rd largest auto market

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- India won't let China's electric vehicle giant BYD expand in the country, its commerce minister said.
- BYD has to convince India it will "play by the rules of the game," Piyush Goyal told a conference.
- BYD rival Tesla is looking to expand in India, which is the world's third biggest car market.
India has blocked Chinese electric vehicle giant BYD from expanding in its auto market, just as Elon Musk's Tesla looks to build its presence there.
"India has to be cautious about its strategic interests, who we allow to invest," Commerce Minister Piyush Goyal told Bloomberg at the India Global Forum on Monday.
Asked about BYD's prospects, he said: "As of now, it's a no."
Goyal accused BYD of engaging in "unfair practices" and said India's government must be "convinced" that the Chinese EV maker would "work by the rules of the game."
India had previously rejected BYD's $1 billion joint venture proposal with a local firm last year, citing national security concerns about Chinese investments.
Tensions between Beijing and Delhi have long been high, with the two growing superpowers often butting heads.
BYD has maintained a limited presence in India. The company sold 3,500 cars in India in 2024, BYD India executive Rajeev Chauhan told Business Standard β less than 0.1% of its 4.27 million global sales last year.
Meanwhile, Tesla has ramped up efforts to break into India, the world's third-largest car market. In February, the company listed 13 job openings based in Mumbai, just days after Prime Minister Narendra Modi met with Musk.
However, Tesla's India ambitions drew criticism from President Donald Trump, who said that opening a Tesla plant there would be "unfair" due to the country's steep import tariffs β up to 100% on EVs.
"Every country in the world takes advantage of us, and they do it with tariffs," he told Fox News in February adding, "It is impossible to sell a car, practically, in, as an example, India."
"Now, if he built the factory in India, that's OK, but that's unfair to us," Trump said of Musk. "It's very unfair."
Last week, Trump imposed 26% tariffs on goods from India as part of his sweeping tariff program.
Musk was also expected to announce a major investment during a trip to India in April 2024 but postponed it after Tesla announced plans to lay off 10% of its global workforce.
Entering the Indian market could give Tesla a much-needed boost. The company has faced sluggish sales in Europe and the US this year, growing competition from BYD, and backlash driven by Musk's work in the Department of Government Efficiency. As of Tuesday's close, Tesla stock was down 41% this year, while BYD shares are up nearly 20%.
Last year, Tesla and BYD were neck and neck in global EV sales, but BYD pulled ahead on revenue β outpacing Tesla by roughly $10 billion for the first time.