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Chinese auto giant launches in India but taxmen shows the door

Chinese auto under taxmen sudden.

India-China relationship have been peevish. BYD, the global challenger to Tesla, is
unwelcome in India despite its offer to make million-dollar investment. BYD Auto
is facing an ongoing investigation that it paid less tax on imported parts for cars
it assembles and sells in the country.

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imc-web desk

BYD may be cheaper and better than Tesla but Indian Government is not impressed:

Though BYD has paid a tax amounting to USD 9 million, this seems to be too less and could lead to additional tax charges and penalties. India taxes imports of fully built electric cars at 70% or 100% based on the value of the vehicle, but levies 15% or 35% on imports of car parts that are then assembled locally into an EV. Those lower rates, however, are only applicable when parts such as a battery pack or motor are imported, without being mounted on a vehicle chassis. One of the sources said BYD had not met these conditions, making it liable to pay either 70% or 100% depending on the value of the car.
Officials at BYD have been facing difficulties in obtaining Indian visas for over a year. Their plans to meet chosen designates in India met with Visa constraints.
Megha Engineering is negotiating with BYD to assemble the Atto 3 and E6 electric cars in India. However, their proposal for a USD1 billion equal joint venture is still pending approval from India's Department for the Promotion of Industry and Internal Trade

HINDI-CHINI BHAI BHAI? NOT MORE?:

It is now considering exempting proposals where the so-called beneficial ownership is less than 10%, which means the investor may be from a neighbouring country but holds only a small stake in the firm proposing the investment. Though that does not apply to all. The blue-eyed boys of the Prime Minister like PayTM are an exception.
The aim is to localise the distribution structure in India, two industry executives said. Vivo and Oppo are the largest brands of China's biggest smartphone manufacturer BBK Group.