This article first appeared on GuruFocus.
BYD Co. (BYDDY) may have a good problem on its hands in India: demand for its electric vehicles is starting to outrun its ability to deliver them.
According to Bloomberg, the Chinese EV maker is actively weighing ways to expand in India as hundreds of customer orders stack up at dealerships. With import quotas and regulatory limits making it harder to ship fully built cars into the country, BYD is now looking at lighter options, including some form of local assembly. People familiar with the talks said the company is also working through safety and certification approvals so it can introduce more models.
India had earlier rejected BYD’s proposal to build a full-scale factory, but the company appears to be adjusting its approach. One option under consideration is assembling semi-knocked-down vehicle kits locally, a route that is typically cheaper and easier to clear with regulators. Any move on manufacturing would likely come after a recent visit by senior BYD executives, signaling renewed engagement with Indian officials.