India rejects BYD's $1 billion factory proposal

India has rejected BYD's proposal to set up a $1 billion factory in the country in partnership with Hyderabad-based Megha Engineering and Infrastructure Ltd, the Economic Times reported on Saturday.

"Currently BYD has no comment on the issue," said the carmaker in a statement to China Daily on Monday.

Reuters reported earlier this month that BYD, China's largest NEV maker, had submitted a $1 billion investment proposal to build electric cars and batteries in India in partnership with a local company.

The Economic Times reported that India's Department of Commerce, Department for Promotion of Industry and Internal Trade had sought opinions from other departments on the investment proposal.

"Security concerns with respect to Chinese investments in India were flagged during the deliberations," the report quoted an Indian official as saying.

BYD celebrated the 16th anniversary of its presence in India earlier this year. BYD India was established in March 2007 in Chennai, with an office in New Delhi.

The Indian subsidiary said on its website that it has two factories in the country, covering more than 140,000 square meters, with a cumulative investment of over $200 million.

Its business covers mobile components, battery energy storage, electric buses, electric trucks, electric forklifts.

Currently, BYD India has over 2,000 employees in Chennai and the company has showrooms across 21 cities.

The carmaker has also introduced some of its popular electric passenger models into the country, including the e6 and the Atto 3.