BYD (Build Your Dreams) is a Chinese automobile manufacturer that has been expanding its presence

globally, including in India. The potential for BYD cars to make a significant impact in the Indian
market depends on several factors:

1. Market Demand for Electric Vehicles (EVs): India is gradually shifting towards electric
vehicles due to environmental concerns and government incentives. BYD, being a leader in
electric vehicle technology, can capitalize on this trend.

2. Government Policies and Incentives: The Indian government has been promoting EV
adoption through initiatives like the Faster Adoption and Manufacturing of Hybrid and
Electric Vehicles (FAME) scheme. These policies can provide a favorable environment for BYD
to grow.

3. Product Offering and Pricing: BYD needs to offer vehicles that are competitively priced and
meet the needs of Indian consumers. This includes considerations for range, charging
infrastructure, and vehicle size.

4. Charging Infrastructure: The success of EVs in India is closely tied to the availability of
charging infrastructure. BYD's ability to collaborate with local partners to expand this
infrastructure will be crucial.

5. Brand Recognition and Trust: As a relatively new player in the Indian market, BYD will need
to build brand recognition and trust among consumers. This can be achieved through
marketing, partnerships, and demonstrating the reliability of their vehicles.

6. Competition: BYD will face competition from both established automakers and new entrants
in the EV space. Their ability to differentiate themselves through technology, design, and
customer service will be important.

7. Local Manufacturing and Partnerships: Establishing local manufacturing facilities or

partnerships can help BYD reduce costs and navigate import tariffs, making their vehicles
more affordable.

In summary, while BYD has the potential to make a dent in the Indian automotive market, its success
will depend on how well it navigates these factors and adapts to the unique challenges and
opportunities in India.

1. Introduction

 The case study, titled "BYD Cars in India: Can They Make a Dent?" and authored by Makrand
Manjul Shandilya, Parijat Upadhyay, and Prabin Kumar Panigrahi, was published in 2023 by
Ivey Publishing, Ivey Business School, Western University. It explores the entry of BYD, a
Chinese car company, into the Indian automobile market and assesses its potential for
success. The study aims to analyze BYD's strategy, its competitive landscape, and the
challenges it faces in the Indian market.
2. Case Study Background

 BYD, a Chinese multinational corporation, entered the Indian automobile market in October
2022 with its electric sports utility vehicle (e-SUV) Atto 3. The company aims to sell 15,000
EVs in India by the end of 2023 and plans to establish a manufacturing plant in India. This
move comes at a time when India is actively promoting electric vehicles and developing its
EV infrastructure. However, BYD faces several challenges in the Indian market, including
intense competition from established players, a negative perception of Chinese products,
and a still-developing EV infrastructure.

3. Critical Thoughts

 Opportunities: BYD has the potential to succeed in the Indian EV market due to its strong
brand recognition in the global EV market, its advanced technology, and its commitment to
manufacturing in India. The Indian government's support for EVs and its growing demand for
sustainable transportation solutions create a favorable environment for BYD's expansion.

 Challenges: BYD faces significant challenges in the Indian market, including:

o Intense Competition: The Indian EV market is already crowded with established

players such as Maruti Suzuki, Hyundai, Tata Motors, and Mahindra & Mahindra.
These players have strong brand recognition, established distribution networks, and
a deep understanding of the Indian consumer market.

o Negative Perception of Chinese Products: Chinese products often face a negative

perception in India due to concerns about quality and reliability. BYD will need to
overcome this perception to gain consumer trust.

o Developing EV Infrastructure: India's EV infrastructure is still under development,

with limited charging stations and a lack of skilled technicians. This could hinder the
adoption of EVs and create challenges for BYD's operations.

o Government Regulations: The Indian government has imposed strict regulations on

Chinese companies operating in India, including increased scrutiny of their
investments. This could create challenges for BYD's expansion plans.

4. Conclusion

 BYD's entry into the Indian EV market presents both opportunities and challenges. The
company has the potential to succeed if it can overcome the challenges it faces and leverage
its strengths. BYD's success will depend on its ability to adapt its strategy to the Indian
market, build consumer trust, and navigate the complex regulatory environment. The case
study concludes by asking whether BYD should focus on the Indian market or explore other,
more friendly and accepting countries. It also asks how BYD should achieve its target of
selling 15,000 units from its Chennai plant.
Group Case Study

The Indian Automotive Market: A Landscape of Growth and Challenges

The Indian automotive market is a dynamic and rapidly growing industry, making it a prime target
area for global automakers. The market is dominated by passenger vehicles, commercial vehicles and
two-wheelers. The demand for automobiles is driven by a growing middle class, increasing
urbanization and a growing economy.

With the rise of the electric vehicles and the Indian government has set ambitious targets to
promote electric vehicles (EVs) to reduce reliance on fossil fuels, improve air quality and combat
climate change This has increased interest in EVs and many Indian and international automakers have
launched EV models.

Despite its potential, the Indian EV market still facing significant challenges on the road as below:
Infrastructure development:

Lack of robust charging infrastructure is a major barrier to EV adoption. If the government invests in
charging centres, growth can accelerate to meet the growing demand.

Affordability:

EVs are still relatively expensive compared to conventional cars, making them out of reach for most
Indians. The government is implementing various schemes to make EVs affordable expensive, but
cost remains a major obstacle.

Consumer perceptions:

Concerns about the movement and performance of EVs, and lack of knowledge about the benefits of
EV ownership. Many consumers remain sceptical about the reliability and practicality of EVs.

BYD's Entry into the Indian Market: A Bold Move with High Stakes

Global players enter fray:

BYD, the leading Chinese EV maker known for its innovative technologies and strong global presence,
announced its entry into the Indian market by October 2022. The move shows BYD’s ambition to be a
leading player in the rapidly growing EV market, but with significant challenges and risks.

Etto 3: A strategic launch:

BYD's initial offering in India is the Etto 3, an electric sports utility vehicle (e-SUV) designed to appeal
to the segment of consumers seeking stylish and technologically advanced vehicles Etto 3 is
positioned as a premium EV, targeting a segment of customers willing to pay more for technology
and convenience.

India's ambitious plans:

BYD has set an ambitious target for India, aiming to sell 15,000 EVs by the end of 2023. It also plans
to set up a manufacturing plant in India to further strengthen its commitment in the Indian market
This move would require substantial capital and BYD would need to navigate the complex Indian
regulatory environment.
Navigating the competitive landscape:

BYD will face stiff competition from leading Indian and international automakers, including Maruti
Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra These companies have a strong foothold in the
market and deliver heavy investments are already being made in EVs. BYD will need to differentiate
itself from these competitors and offer customers a compelling value proposition.

Overcoming the "Made in China" mind thinking:

BYD will need to overcome the negative perceptions of some Indians towards Chinese products They
need to be confident and need to showcase the quality and reliability of their cars. This will require a
strong marketing strategy and a focus on building relationships with customers.

Adapting to the Indian Market:

BYD needs to adapt to the unique characteristics of the Indian market including its affordability,
consumer preferences and regulatory environment. This includes understanding the unique needs
and preferences of Indian consumers, and navigating stringent Indian regulations.

Leveraging government support:

BYD can take advantage of Indian Government’s pro-EV policies, such as incentives and tax breaks, to
accelerate its growth. But government policy is still evolving, and BYD will need to stay abreast of the
changes and adapt its policies accordingly.