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The base Han L sedan also costs more than $10,000 less than the cheapest Tesla Model 3, available for 219,800 yuan ($30,100).

India won't let China's electric vehicle giant BYD expand in the country, its commerce minister said. BYD has to convince India it will "play by the rules of the game," Piyush Goyal told a conference.

India will restrict market access to BYD, signaling continued caution towards Chinese investments despite warming relations.