Chinese electric vehicle (EV) giant BYD is in advanced discussions to establish its first manufacturing unit in India, with Telangana emerging as the frontrunner, according to a report by ETV Bharat. If finalized, this will make Telangana the first Indian state to host a BYD production facility.

The Telangana government has proposed three potential sites near Hyderabad for the plant, and BYD representatives are currently assessing these locations before making a final decision. The state government has assured full support, including land allocation, for the project. Once confirmed, an agreement between BYD and state authorities is expected, marking a major private-sector investment in India’s EV sector. The move could also lead to the development of an automotive cluster around Hyderabad, boosting ancillary industries for EV components.

BYD’s First Manufacturing Unit in India

Despite having an established presence in India, BYD does not yet operate a production facility in the country. Currently, it imports electric vehicles from China, facing high import duties that increase costs and limit market penetration. A local manufacturing unit would significantly reduce prices, enhancing BYD’s competitiveness in India’s rapidly growing EV market.

The company had been exploring investment options for the past two years but faced regulatory hurdles due to restrictions on Chinese investments. In 2023, India’s commerce and industry ministry, along with other key government departments, had rejected a $1 billion investment proposal from BYD and its Hyderabad-based partner Megha Engineering and Infrastructures Ltd (MEIL) for an EV manufacturing facility in Telangana. The proposal, worth ₹8,200 crore, was turned down amid national security concerns.

However, recent policy shifts appear to have eased restrictions, allowing BYD to move forward with its expansion plans. The company already has a technical partnership with Olectra Greentech, a MEIL subsidiary, which has been operating electric buses in Hyderabad using BYD technology. Industry analysts believe this existing collaboration played a key role in BYD’s decision to focus on Telangana for its new facility.

Expansion Plans: Battery Production and Beyond

Beyond vehicle manufacturing, BYD is also planning to set up a 20-gigawatt battery production plant in India. Over the next five to seven years, it aims to ramp up its production capacity to 600,000 EVs annually.

Also Read | India may clock sale of 5 crore EVs by 2030: Study

The company has seen significant global success, recently surpassing Tesla in revenue. BYD generated approximately $107 billion (₹9.20 trillion) in revenue, outpacing Tesla’s $97.7 billion (₹8.40 trillion). With Tesla facing slowing sales in China and Europe, BYD continues to expand aggressively, introducing cutting-edge technology such as a 1 MW flash charger capable of fully charging a vehicle in just 5-8 minutes. This innovation could enable EVs to travel up to 400 km on a single charge, revolutionizing the future of electric mobility.

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