China’s BYD Co has submitted a $1 billion investment proposal to manufacture electric cars and batteries in India through a partnership with a local company, according to three anonymous sources familiar with the plan.
BYD and the privately held Megha Engineering and Infrastructures, based in Hyderabad, have submitted a joint proposal to Indian regulators to establish an electric vehicle (EV) joint venture. The sources requested anonymity as the application is private.
One of the sources stated that the long-term plan is to manufacture a complete range of electric cars under the BYD brand in India, from hatchbacks to luxury models.
BYD, the world’s largest producer of EVs and plug-in hybrid vehicles, has not yet responded to requests for comment. The company previously announced plans to establish manufacturing facilities in India, currently the world’s third-largest car market.
India’s commerce and heavy industries ministries have not issued any official response to the proposal.
If approved, BYD’s investment in India would further its rapid global expansion and provide it with a presence in all major car markets worldwide, except for the United States. This move is intended to challenge Tesla, which currently leads in EV sales.
Tesla has recently resumed discussions with the Indian government after pausing plans to enter the market last year due to unsuccessful negotiations for lower tax rates on imported vehicles.
BYD has already invested $200 million in India, where it currently sells the Atto 3 electric SUV and the e6 EV to corporate fleets. The company is also planning to launch the Seal luxury electric sedan in India this year.
The exact production capacity proposed by BYD is not yet known.
According to one of the sources, BYD intends to initially ship vehicle parts for assembly in India as it works to establish a supply chain. It plans to gradually scale up production to reach 100,000 EVs per year in India over the next few years.
The investment proposal also includes plans to set up charging stations, research and development centers, and training facilities in India.
This joint proposal comes amid stricter investment regulations in India, which have been in place since 2020. These regulations have forced other Chinese automakers, such as Great Wall Motor, to halt their investment plans in India.
BYD entered the Indian market in 2007, initially producing batteries and components for mobile phone manufacturers. In 2013, it established a joint venture with Megha Engineering called Olectra Greentech to manufacture electric buses in India.
BYD sold a total of 1.86 million electric and plug-in hybrid vehicles in 2022. In India, electric vehicles accounted for just over 1% of total car sales in 2022, but the Indian government aims to increase this to 30% by 2030.
In the Indian market, BYD will face competition from domestic automaker Tata Motors and Chinese rival MG Motor, which currently dominate electric car sales.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
