BYD Sales Good But MD Running Indian Operations 'Remotely': Here's Why

Written By: Kailash Jha
Published: July 29, 2025 at 01:45 AMUpdated: Updated: July 29, 2025 at 01:45 AM
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In an intriguing twist of fate, BYD, a Chinese electric vehicle behemoth, has been steering its operations in India from a distance. Despite posting impressive sales figures, the company's Managing Director Ketsu Zhang finds himself orchestrating the Indian business remotely from Tokyo. This unusual circumstance stems from the ongoing India-China geopolitical tensions, putting a spotlight on how international disputes are reshaping the corporate landscape in one of the world's burgeoning EV markets.

Strong Sales Amidst Operational Challenges

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BYD's journey in the Indian market is nothing short of remarkable. The company has seen a staggering 90.3% increase in sales, selling 3,401 cars in a single fiscal year and securing the fourth spot in the electric passenger vehicle segment. Its focus on the luxury sector, with models priced above Rs 30 lakh, has paid off, making it a leader in this niche. The Seal sedan, in particular, has been a game-changer, with over 1,000 units sold within six months of its launch.

Remote Management from Tokyo

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The plot thickens with BYD's Managing Director, Ketsu Zhang, running operations from Tokyo due to an inability to secure a work permit in India. This unique situation has led to board meetings and high-level discussions being held in third countries, highlighting the lengths to which BYD has to go to navigate the geopolitical landscape. The company is actively seeking solutions to ensure compliance with regulatory requirements but admits to facing delays.

Visa Restrictions Impact Operations

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The root of BYD's operational woes can be traced back to the stringent visa policies India adopted following the 2020 Galwan Valley clash. These policies have not only affected BYD but have also had a ripple effect on other Chinese companies operating in India. The tightened visa approvals have disrupted day-to-day operations and even forced the Tata Group to cancel a significant joint venture with a Chinese firm.

Manufacturing Plans Rejected

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Adding to BYD's challenges, India rejected the company's $1 billion manufacturing proposal, citing security concerns. This decision underscores the broader difficulties Chinese companies face in investing in India's burgeoning EV market, given the current geopolitical climate. The rejection of the manufacturing plant proposal has been a significant blow to BYD's expansion plans in India.

Leadership Transition Amidst Challenges

Despite these hurdles, BYD has seen a leadership transition, with Rajeev Chauhan taking over the helm of the Electric Passenger Vehicle Business. Under his guidance, the company has expanded its dealer network, signaling a continued commitment to the Indian market despite the operational challenges.

Market Position Despite Constraints

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Despite the obstacles, BYD has managed to maintain its leadership in the luxury EV segment in India. The company's success is attributed to its "born EV" technology and a strategic focus on premium models. However, the visa and investment restrictions have limited BYD's ability to tap into lower-priced segments, highlighting the geopolitical barriers to market access.

Geopolitical Impact on Business Strategy

BYD's situation is a clear illustration of how geopolitical tensions can influence corporate strategy and operations. The remote management structure, while functional, introduces inefficiencies and challenges in decision-making and relationship building. The company's resilience in maintaining its market position despite these constraints is commendable, but it also underscores the need for a resolution to the ongoing India-China tensions.

Via BusinessStandard