EV Maker BYD Said to Be Planning to Invest $1 Billion in India for Electric Cars, Batteries

EV Maker BYD Said to Be Planning to Invest $1 Billion in India for Electric Cars, Batteries
Source: Twitter

Chinese electric vehicle (EV) manufacturer BYD is reportedly planning to invest $1 billion (approximately Rs. 8,200 crore) in India for the production of electric cars and batteries. BYD has submitted a proposal to Indian regulators to form a joint venture with Megha Engineering and Infrastructures, a privately held company based in Hyderabad.The investment proposal includes the establishment of an EV joint venture between BYD and Megha Engineering, with the longer-term plan of manufacturing a complete lineup of BYD-branded electric cars in India, ranging from hatchbacks to luxury models. This move is part of BYD’s global expansion strategy to challenge Tesla, the current leader in EV sales.

BYD, known as the world’s largest producer of EVs and plug-in hybrid vehicles, aims to set up manufacturing facilities in India, which is now the third-largest car market worldwide. However, the company is yet to comment on this development. The investment proposal also entails the creation of charging stations in India, as well as the establishment of research and development and training centers. Furthermore, BYD plans to scale up its production capacity in India to reach 100,000 EVs annually over the next few years. Initially, vehicles may be shipped in parts for assembly in the country to build a local supply chain.

The joint venture proposal between BYD and Megha Engineering comes at a time when India has imposed stricter investment regulations, particularly concerning investments from neighboring countries like China. These regulations have impacted other Chinese automakers, such as Great Wall Motor and SAIC’s MG Motor unit.BYD has already invested $200 million (approximately Rs. 1,650 crore) in India, where it currently sells the Atto 3 electric SUV and the e6 EV to corporate fleets. The company also plans to introduce its Seal luxury electric sedan in the Indian market this year.

While BYD’s total proposed production capacity in India is not yet known, the investment will position the company in all major global car markets, except for the United States. Tesla, which leads in EV sales, recently resumed talks with the Indian government after delaying its entry into the market due to challenges in securing lower tax duties on imported vehicles. In India, BYD will face competition from domestic automaker Tata Motors and Chinese rival MG Motor, which currently dominate the electric car sales market. The Indian government aims to increase the share of EVs in total car sales to 30 percent by 2030, with EVs currently accounting for just over 1 percent of the country’s total car sales in 2022.

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