New Delhi: These days, there is a war between two giants in the world of electric vehicles (EV). On one hand, China’s BYD is dominating the market on the basis of its technology and sales, while on the other hand, America’s Tesla is facing challenges. But the story looks different in India. While BYD is getting a cold response for its ambitious plans, the red carpet is being rolled out for Tesla. The question arises—will the policies of the Indian government help Elon Musk’s company get an edge over BYD?
Tesla welcome in India
The Indian government has recently made a big change in its EV policy. Under the new policy, the duty on imported electric cars has been reduced from 110 percent to 15 percent, provided the company sets up a manufacturing unit in India within three years and invests at least $50 million. This move is no less than a golden opportunity for Tesla. The government has been appealing to Elon Musk to invest in India for a long time, and now Tesla has made full preparations to enter the Indian market.

On the other hand, this time is very important for Tesla. Musk’s company is facing boycott in America and Europe. People are keeping distance from Tesla due to his political activities and closeness to the Trump administration. In China, which is Tesla’s largest market, BYD has challenged its supremacy. In such a situation, India with a population of 150 crores has emerged as a new hope for Tesla.

Obstacles in the path of BYD

China’s giant EV company BYD had planned to invest one billion dollars in India. This proposal has been under consideration with the government for the last one year, but it has not yet got the green signal. According to India’s policy, the approval of the central government is necessary for investment coming from China, and the current geopolitical tensions remain the biggest obstacle in its way. Union Industry Minister Piyush Goyal said in a recent interview to Bloomberg, “We are cautious about our strategy. We have to take care of the security and economic interests of the country.” His statement seems to be overshadowing BYD’s expectations.

However, BYD is already present in India. The company is selling electric buses and cars. At the Auto Expo 2025, it also introduced its new car ‘BYD Sealion’, which was well received by the people. But due to lack of approval of the manufacturing plant, its expansion plans are hanging in the balance.

BYD’s dominance, Tesla’s challenge

BYD’s dominance continues in the global market. In the first quarter of 2025, the company sold more than 10 lakh EVs and hybrid cars with a spectacular increase of 60 percent. According to a CNN report, out of this, 4.16 lakh were pure electric vehicles, which is 39 percent more than last year. In contrast, Tesla’s sales have declined. Between January and March 2025, Tesla sold 3.36 lakh units, down 13 per cent from 3.87 lakh last year.

The secret of BYD’s success is its affordable prices and hybrid technology. The company has made its presence felt not only in China but also in Europe, Latin America and Southeast Asia. On the other hand, Tesla’s premium image and high prices are keeping it away from common consumers.

Why is India important?

India’s EV market is growing rapidly. According to a report by S&P Global Mobility, more than 3 lakh electric vehicles are expected to be produced in India in 2025. Local players like Tata Motors and Mahindra are already in a strong position, but global brands like Tesla and BYD can take it to new heights. Policy relaxation and market prospects are giving Tesla a new opportunity, while BYD has been pushed back by policy hurdles.

Automotive expert Ravi Gaddepalli says, “Tesla needs India, but India also needs a brand like Tesla. It will bring investment and technology. But it is not right to ignore BYD. Its affordable vehicles can be a game-changer for the Indian middle class.”

The way forward

Tesla is preparing to open its first showroom in India soon. If it starts local production, its vehicles can become cheaper, which will increase pressure on BYD. But if BYD gets approval, its affordable and advanced technology can become a challenge for Tesla. This battle is no longer just about technology and sales, but also about policies and diplomacy.

Final view

India has become an important turning point in this race between BYD and Tesla. While Tesla is getting policy support, BYD was stopped at the door. Is this help from India for Elon Musk or part of the country’s strategy? This question is in everyone’s mind. How do you see this political-economic game? Do share your opinion.