China's BYD is continuing efforts to expand operations in India despite government-imposed restrictions that are affecting the electric vehicle (EV) manufacturer's ability to conduct business activities.

Similar to other Chinese firms, BYD has faced difficulties obtaining visas for its executives following a fatal clash between Indian and Chinese soldiers along a disputed Himalayan border in 2020, which resulted in a decline in bilateral relations.

As a result, the company has conducted board meetings and high-level business discussions in Colombo (Sri Lanka), Kathmandu (Nepal), and Singapore, according to individuals familiar with the matter.

Ketsu Zhang, BYD's Managing Director for India, has not obtained a work permit since leaving the company's local office in Chennai, despite efforts by the government to facilitate travel, according to sources.

Zhang worked from BYD's headquarters in Shenzhen in 2021 before relocating to Tokyo in 2025. From Japan, he currently oversees operations in various Asian markets, including India.

A physical presence in India is regarded as necessary for manufacturers due to the requirements of timely decision-making, resolving production-related matters, and establishing local stakeholder engagement.

Diplomatic friction

Tensions remain between the two countries. In March, travel restrictions were still in place.

During that month, an Indian delegation scheduled to attend a major meeting of the carmaker's dealers in Shenzhen was reduced in size after most participants, including BYD's India-based employees, were unable to obtain visas, a source familiar with the situation said.

A BYD representative in India declined to comment.

Indian authorities have taken a reserved approach toward investment from the firm. Earlier in 2025, Commerce Minister Piyush Goyal stated that BYD's proposals would not be accepted, citing national strategic concerns.

India has already rejected the company's US$ 1 billion plan to establish a manufacturing facility in collaboration with a local partner. This prevents the firm from qualifying for lower import tariffs offered in exchange for setting up domestic production.

The situation differs from that of Tesla. Chief Executive Officer Elon Musk met Indian Prime Minister Narendra Modi in the United States earlier this year. Tesla has since opened its first showrooms in India, with deliveries scheduled to begin as early as August.

Tesla has not confirmed plans for local manufacturing and therefore remains subject to import duties of up to 110% on fully assembled vehicles.

Overseas expansion remains a stated objective for BYD. The company faces challenges in meeting its 2025 sales target of 5.5 million vehicles, amid slowing demand in China and regulatory scrutiny following price reductions.

In the absence of authorisation for local manufacturing, BYD relies on its assembly facility in Chennai, which has an annual production capacity of 10,000 to 15,000 units, to supply the Indian market.

Import tariffs and certification barriers

Most BYD vehicles sold in India are imported. High import duties, designed to protect domestic manufacturers, can double the cost of vehicles.

Additionally, Indian regulations restrict import volumes unless a model receives local roadworthiness certification.

Although diplomatic tensions appear to be easing, it remains unclear whether professional visa restrictions will be lifted or whether BYD will be permitted to increase its market presence in India.

Earlier this month, India resumed issuing tourist visas to Chinese nationals, suggesting limited changes in policy.