Daily Update, July 28th: Launch of Kinetic DX, Expansion of BYD's Indian Operations, Steelbird's Production Goals, and More...
In the world of automotive business, two significant developments are taking place in India.
Firstly, Chinese car manufacturer BYD is expanding its presence in India, despite government roadblocks preventing key business dealings. Due to visa restrictions and work permit refusals, BYD's executives, including the India MD, Ketsu Zhang, are operating remotely from locations outside India, primarily Tokyo. The company is managing its Indian market activities remotely and holding important meetings in third countries such as Sri Lanka, Nepal, and Singapore. Despite these challenges, the demand for BYD's vehicles in India is robust, with sales nearly reaching the 2024 annual total by mid-2025.
BYD operates an assembly plant in Chennai with a capacity of 10,000–15,000 units annually, serving as a stop-gap to avoid higher import tariffs. However, the company cannot access preferred import duties tied to local manufacturing. The company's broader backdrop includes ongoing Sino-Indian tensions, resulting in tightened visa policies and rejection of BYD’s local investment plans due to national security concerns, constraining the company’s ability to invest and scale manufacturing in India.
On the other hand, Kinetic, an Indian electric scooter manufacturer, has launched its new offering, the Kinetic DX. Bookings for the scooter are open from July 28, 2022, and deliveries will commence in October 2025. The scooter comes in five different color choices - White, Blue, Black, Silver, and Red, and is available in two variants - DX and DX+. The prices for the Kinetic DX start at ₹1.12 lakh (ex-showroom) and go up to ₹1.18 lakh (ex-showroom). The scooter promises a range of 116 km. Kinetic offers a standard warranty of three years or 30,000 km for the DX, and an extended warranty of nine years or one lakh km is available. Interested consumers can book the Kinetic DX at a token amount of ₹1,000.
Steelbird Hi-Tech, the parent company of Kinetic, aims to produce 60,000 helmets per day and plans to launch 15 new helmet models per year. The company is working towards building the largest integrated helmet ecosystem in India, but there is no information about any government roadblocks affecting its business in India or about its operations being conducted remotely. There is also no information about any tensions between India and another country affecting Steelbird Hi-Tech's business.
Steelbird Hi-Tech targets a revenue of ₹1,300 crore by FY26-27, but there is no information about the pricing or availability of the new helmets from Steelbird Hi-Tech.
Sources: [1] BYD's strategy to expand in India amid Indo-China tensions and visa restrictions [2] BYD sales in India grow despite operational hurdles [3] BYD's local assembly, not manufacturing strategy in India [4] BYD's remote operations and third-country venues in India
- The expansion of Chinese car manufacturer BYD in India's automotive industry is remarkable, despite the challenges posed by government roadblocks, visa restrictions, and work permit refusals that have forced their executives to operate remotely from countries like Japan.
- In contrast, the finance sector in India is witnessing a unique development with Kinetic, an Indian electric scooter manufacturer, launching its new offering, the Kinetic DX, despite no such reported tensions or visa issues.
- As the technology sector evolves, Electric Vehicles (EVs) are becoming a significant part of India's lifestyle, with BYD's demand remaining robust, and local companies like Kinetic introducing innovative products like the Kinetic DX, promising a range of 116 km.
