Core Viewpoint - BYD Co. is exploring options to expand its presence in India, including local assembly to meet the increasing demand for its electric vehicles, amidst regulatory challenges and a competitive market landscape [1][4]. Group 1: Expansion Plans - The company is considering local assembly of semi-assembled parts in India, which would be more cost-effective and easier to obtain regulatory approvals compared to a full assembly plant [2]. - BYD is working on obtaining local safety and regulatory certifications for additional models to navigate import quotas [1]. Group 2: Market Demand and Sales Performance - Strong demand for BYD vehicles in India has led to a reassessment of strategies to increase car availability, with dealers reportedly holding hundreds of bookings [3]. - BYD's sales in India surged approximately 88% last year, reaching around 5,500 cars, despite facing import duties of up to 110% on fully built models [6]. Group 3: Competitive Landscape - The Atto 3, priced at 2.5 million rupees ($27,255), competes in the premium segment of India's mass-market EVs, undercutting Tesla's pricing [8]. - The Sealion 7, which sold 2,200 units last year, is priced between 4.9 million to 5.5 million rupees, also positioned below Tesla's Model Y [8]. Group 4: Regulatory Challenges - BYD has approached Indian regulators to address concerns regarding import limits that could hinder growth, contrasting with Tesla's ongoing struggles against similar tariff barriers [9]. - The company is facing regulatory hurdles in one of the fastest-growing auto markets, reflecting a strategic shift to strengthen its position in India despite previous pushbacks from the Indian government [4]. Group 5: Strategic Importance - Diversifying beyond China has become crucial for BYD as domestic growth slows due to reduced EV subsidies and increasing competition [5]. - The company aims to boost deliveries to markets outside China by nearly 25% this year [5].