New Delhi: Chinese electric vehicle (EV) manufacturer BYD is preparing to establish its first manufacturing unit in India, with plans to set up the facility near Hyderabad, Telangana.
The decision marks a significant milestone, as it would make Telangana the first Indian state to host a BYD factory.
Following extensive talks with the Telangana government, the company has received
assurances of full support, including land allocation for the project.
The Telangana government has suggested three potential sites near Hyderabad, which BYD representatives are currently assessing. Once a site is finalized, an agreement will be signed between the company and state authorities.
If the project goes ahead, it would represent one of the largest private sector investments in India’s burgeoning EV market, potentially sparking the creation of ancillary industries that manufacture EV components. This, in turn, could create an automotive hub in and around Hyderabad.
Currently, BYD imports its electric vehicles into India from China, facing high import duties that increase prices and limit market penetration. A local manufacturing facility would help reduce costs, making the company more competitive in India’s rapidly growing EV sector. Beyond vehicle assembly, BYD is also planning to set up a 20-gigawatt battery manufacturing plant in India. Over the next five to seven years, the company aims to ramp up production capacity to 600,000 EVs annually.
Meanwhile, Tesla, another major EV player, has struggled with its entry into India, facing delays in establishing a local presence. With Indian EV manufacturers like Tata and Mahindra gaining momentum, BYD’s move could present significant competition for Tesla, which has yet to make a substantial impact on the Indian market. As BYD plants roots in India, it could be poised to challenge Tesla’s aspirations in the country.