BYD Denies Plans To Build $10 Billion EV Manufacturing Plant In India, Calls The Claims 'Untrue'

Several reports earlier suggested that Telangana had even identified three potential locations near Hyderabad for the proposed facility, with BYD representatives reportedly evaluating the sites.

However, the company has now dismissed any such plans, stating that no agreement or investment decision has been finalised.

Source : Somnath Chatterjee

Chinese electric vehicle (EV) giant BYD has rejected recent claims about its alleged plans to establish a manufacturing plant in India. In a statement shared on its WeChat account, the company categorically denied reports suggesting it was investing $10 billion to develop a production facility in Hyderabad, reported Business Standard.

BYD described the information as "untrue," refuting speculation circulating in various media outlets last week. Several reports earlier indicated that BYD was in discussions with the Telangana government regarding the project. These reports suggested that the state had even identified three potential locations near Hyderabad for the proposed facility, with BYD representatives reportedly evaluating the sites.

However, the company has now dismissed any such plans, stating that no agreement or investment decision has been finalised.

BYD’s Presence in India and Market Challenges

While BYD has been actively expanding across international markets, including Southeast Asia, South America, and Europe, its India operations remain relatively limited. The company operates in the country through its subsidiary, BYD India, which primarily focuses on electric buses and passenger vehicles.

Despite its presence in the Indian market, BYD has not established a domestic manufacturing unit. Currently, it imports EVs from China, a strategy that results in steep import duties, making its vehicles more expensive and restricting its competitiveness in India’s growing EV market. A local production facility could significantly lower costs and enhance its position against domestic and international rivals.

Regulatory Roadblocks and Rejected Investment Proposal

For the past two years, BYD has been exploring options to set up manufacturing in India, but regulatory challenges have hampered progress. The Indian government has tightened scrutiny on Chinese investments, which has complicated BYD’s expansion plans.

In 2023, the company faced a major setback when its joint investment proposal with Megha Engineering and Infrastructures Ltd (MEIL) was rejected. The $1 billion proposal sought approval to build an EV manufacturing facility in Telangana, with an estimated investment of Rs 8,200 crore.

The plan was under review by the Commerce and Industry Ministry, alongside the Ministry of Heavy Industries, External Affairs, and Home Affairs. However, the government ultimately declined the proposal, further limiting BYD’s prospects for large-scale manufacturing in India.