NEW DELHI: Chinese electric carmaker BYD has reportedly proposed a $1 billion investment in India to establish manufacturing facilities for electric vehicles and batteries. BYD, which competes with Tesla in the global electric car market, already has a presence in India, where it sells the Atto 3 electric SUV and the e6 electric sedan.
As per news agency reports, BYD and Hyderabad-based Megha Engineering and Infrastructures have submitted a proposal to Indian regulators to form an EV joint venture. Currently, BYD has a facility in Tamil Nadu. Megha Engineering and Infrastructures is involved in the construction of roads, bridges, and power plants.
The longer-term plan is to build a full line-up of BYD-brand EVs in India, from hatchbacks to luxury models. If the India investment sails through, it would give BYD a presence in all major global car markets with the exception of the United States.
BYD’s increased interest in the Indian market comes as Elon Musk’s Tesla is again gearing up to enter the local market. After Prime Minister Narendra Modi’s recent visit to the USA, Tesla officials have resumed its talks with the Indian government.
According to the report, BYD plans to scale up to production of 100,000 electric vehicles annually in India over a few years. However, the company would likely begin by shipping vehicles in parts for assembly in the country as it works to build up a supply chain.
BYD is the second Chinese four-wheeler company which has operations in India, the first being SAIC-owned MG Motors. In May this year, MG Motor announced it is planning to sell a majority stake in its India operation to a local partner (or partners) in the next 2 to 4 years, according to the company’s strategic 5-year business roadmap. This move by the carmaker had come as more Chinese firms are struggling to obtain foreign direct investment (FDI) clearance from the Government of India for their future endeavours.
