China's BYD clears import hurdle, looks to accelerate India push
MUMBAI/NEW DELHI: BYD India has secured regulatory certification for three of its four models, removing the annual 2,500-unit import restriction on those vehicles and giving the Chinese carmaker greater flexibility to meet demand. The move is particularly significant for its fast-selling Sealion 7, as BYD seeks to expand its presence in India's electric passenger vehicle market.
"We have four models and three of them are homologated with a certified agency, ARAI, except for Seal," Rajeev Chauhan, executive vice-president at BYD India, told Mint on the sidelines of the launch of the company's luxury brand Denza on Friday.
Homologation is the process through which testing agencies such as the Automotive Research Association of India (ARAI) certify that a vehicle meets the country's technical and safety requirements for road use. Under India's import rules, vehicles with international certification but without Indian homologation can be imported only up to 2,500 units per model annually. Securing Indian homologation removes that restriction.
BYD was among a handful of foreign carmakers relying on international homologation certificates to sell vehicles in India, subjecting each model to the annual import ceiling. Most other foreign automakers have Indian homologation certificates, allowing them to import and sell vehicles without this restriction.
BYD entered India's electric passenger vehicle market in 2021 with the e6 electric MPV (multi-purpose vehicle), initially targeting fleet and commercial customers before expanding into the retail market. It launched the Atto 3 electric SUV (sport utility vehicle) in October 2022, followed by the Seal electric sedan in March 2024. In October 2024, it introduced the eMax 7, the successor to the e6, with six- and seven-seater configurations. Its fourth current offering, the Sealion 7 electric SUV, was launched in February 2025.
The certification is particularly significant for the Sealion 7, which has emerged as one of BYD's most important models in India, according to the company's disclosures. The carmaker had been working to secure Indian certification for the SUV after its import quota became a constraint on sales, Mint reported in March.
BYD's retail sales rose 54% to 5,361 electric passenger vehicles in fiscal year 2026 (FY26) from 3,481 in FY25, according to the Federation of Automobile Dealers Associations (FADA). India's overall electric passenger vehicle market grew 83.6% to 199,923 units during the period, taking EV penetration to 4.2% from 2.6% a year earlier.
The certification comes as BYD seeks to regain a place among India's five largest electric passenger vehicle makers. It also comes as the company expands into the luxury segment with Denza.
India-China equation
BYD's expansion comes amid a gradual thaw in India-China relations. The two countries have resumed direct flights, while Prime Minister Narendra Modi and Chinese President Xi Jinping met on the sidelines of the BRICS summit in September.
In March, the Centre eased certain provisions under Press Note 3, which had subjected investments from countries sharing a land border with India to government approval. The revised framework provides faster approvals for investments in select manufacturing sectors, but Chinese entities continue to face restrictions and the automobile sector remains outside the relaxation.
Earlier in March, the Centre had eased certain provisions under Press Note 3, which had made investments from countries sharing a land border with India subject to government approval. The revised framework provides a faster approval mechanism for investments in select manufacturing sectors. However, Chinese entities continue to face restrictions, and the automobile sector has not been brought under the wider relaxation.
The improving diplomatic climate has not removed the underlying commercial tensions. Indian companies continue to face difficulties in accessing Chinese technology and critical components, even as they try to build domestic capabilities.
Amara Raja Energy & Mobility, for instance, has been forced to develop its own lithium-ion cell technology capabilities after difficulties with technology transfers from its Chinese partner Gotion. JSW Group put its cell plans on hold after failing to secure a Chinese partner.
China's restrictions on rare-earth magnet exports in 2025 also disrupted Indian automakers and component suppliers.
Against this backdrop, BYD's expanded ability to import vehicles offers it a commercial advantage, even as it continues to sell completely built units and has no local assembly operations.
Luxury ambitions
The company's latest move is to enter India's luxury car market through Denza, with two products: the D9, a seven-seater luxury MPV, and the Z9 GT. The brand will initially enter six cities: Mumbai, Gurugram, Chennai, Hyderabad, Bengaluru and Ahmedabad.
JSW MG Motor India, the joint venture between JSW Group and China's SAIC Motor, has also entered the electric luxury space with its M9 electric MPV and Cyberster sports car. Denza, however, is the first dedicated Chinese luxury brand to enter India.
BYD has yet to decide whether to seek Indian homologation for Denza's products. Chauhan said the company would first assess customer response. “We will look at the reactions of customers and the media, and only after that (take) a call on whether we should go in for certification,” he said.
For now, BYD is counting on greater import flexibility for its existing models to build scale in India, while testing the market for its luxury offerings.