Chinese electric vehicle (EV) manufacturer BYD India is encountering increasing challenges in the Indian market. While the company strives to expand its operations, it grapples with significant regulatory hurdles, legal disputes, and now, escalating customer dissatisfaction. A BYD E6 owner has taken to X (formerly Twitter) to announce the issuance of a legal notice demanding a vehicle buyback.
User Bharat Bhushan (@BharatBhushanin) reported on X that the driver-side airbag of his BYD E6 unexpectedly deployed on January 31, 2025, when the vehicle merely bounced over a speed bump. Subsequently, his insurance claim with ICICI Lombard was denied, citing the absence of a collision and external body damage.
Further exacerbating the situation, BYD India’s Noida showroom and workshop refused to rectify the issue under warranty. Instead, they presented an estimated repair cost of approximately ₹1 lakh and indicated a month-long wait for parts sourced from abroad. Frustrated by the company’s response, Bharat Bhushan has served BYD India with a legal notice seeking a vehicle buyback, contending that the airbag deployment without an accident points to a manufacturing defect.
Bharat Bhushan emphasized that the insurance company’s rejection of the claim, coupled with the unexplained airbag deployment, underscores a potentially hazardous situation that BYD has overlooked. Moreover, the unavailability of spare parts in India contributes to prolonged repair times. As of now, 27 days have elapsed without any concrete update on the availability of the required parts.
For BYD to thrive in the Indian market, fostering consumer trust is paramount. Addressing concerns related to product reliability, service quality, and long-term support is indispensable. The company must prioritize the swift resolution of customer grievances to avoid the fate of other foreign automakers that have exited India.
BYD is also under scrutiny by the Directorate of Revenue Intelligence (DRI) for allegedly underpaying taxes on imported car parts. Although the company has reportedly deposited the disputed amount, the investigation remains ongoing.
Additionally, BYD’s plans to establish a manufacturing plant in India have encountered setbacks, with the Indian government rejecting their previous proposal. In addition to these regulatory challenges, BYD India is also facing service-related challenges. As a new entrant in the automotive market, establishing a robust service network is critical. BYD faces the challenge of ensuring adequate after-sales service, such as maintenance, repairs, and spare parts availability, across India’s diverse geographical landscape.
To solidify its position in the market, BYD must cultivate consumer confidence. Prioritizing product reliability, service quality, and long-term support is essential. Promptly addressing consumer complaints is also imperative; otherwise, the company may be compelled to withdraw from India, similar to other foreign car manufacturers.