BYD, the Chinese electric vehicle (EV) maker, had its proposal to invest $1 billion in India rejected by the Indian government. The rejection came after concerns were raised about security issues related to Chinese investments in the country. BYD had planned to partner with a private Hyderabad-based company, Megha Engineering and Infrastructures Ltd, to establish an EV manufacturing plant in Hyderabad. The joint venture aimed to produce 10,000 to 15,000 electric cars per year, with Megha Engineering handling the capital requirements and BYD providing the technology. This development is part of the ongoing tensions between India and China, which have impacted the flow of foreign direct investment. BYD currently has two models available in India, the E6 MPV and Atto 3 electric SUV, and had showcased its upcoming Seal EV sedan at Auto Expo 2023. Despite the rejection of its investment proposal, BYD has been involved in various sectors in India, including material handling equipment, public sector transport, and heavy-duty trucks.