BYD To Launch First EV Manufacturing Facility In India Near Hyderabad

The Telangana govt has proposed 3 potential sites for the facility, all located near Hyderabad. BYD representatives are currently evaluating these options, after which a final decision will be made

Currently, BYD imports its electric vehicles from China, which results in high import duties

Source : Other

Chinese electric vehicle (EV) manufacturer BYD is set to establish its first production facility in India, with plans to build it near Hyderabad, according to a report from ETV Bharat on Thursday. This move will make Telangana the first Indian state to host a BYD manufacturing plant. The decision follows in-depth discussions with the state government, which has pledged its full support, including providing land for the project.

The Telangana government has proposed three potential sites for the facility, all located near Hyderabad. BYD representatives are currently evaluating these options, after which a final decision will be made.

Once the location is finalised, an official agreement between BYD and the state authorities is expected to be signed. If the project goes ahead, it will represent one of the largest private-sector investments in India’s EV sector. In addition, the project could lead to the development of a surrounding ecosystem of ancillary industries manufacturing EV components, fostering an automotive hub around Hyderabad.

Currently, BYD imports its electric vehicles from China, which results in high import duties and, consequently, higher prices, limiting its market share in India. By setting up a local manufacturing unit, the company aims to reduce costs, enhance its competitiveness, and expand its presence in India’s rapidly growing EV market.

For the past two years, BYD has been considering options to establish a production facility in India, but its plans were delayed due to stringent regulations on Chinese investments.

In 2023, the Indian government rejected a $1 billion investment proposal from BYD and its Hyderabad-based partner Megha Engineering and Infrastructures Ltd (MEIL) for an electric vehicle (EV) manufacturing plant. The joint venture had proposed building the facility in Telangana with an estimated investment of Rs 8,200 crore. The proposal was submitted to the Ministry of Commerce and Industry and was subsequently reviewed by the Ministries of Heavy Industries, External Affairs, and Home Affairs before being rejected.

Partnership With Olectra Greentech

However, with recent policy adjustments easing investment restrictions, BYD appears to be progressing with its plans to expand in India. The company already has an established technical partnership with Olectra Greentech, a subsidiary of the MEIL Group, which has been operating electric buses in Hyderabad for several years. Olectra manufactures these buses using BYD technology and supplies them across the country. Industry analysts believe that this existing collaboration may have played a role in BYD’s decision to choose Telangana for its new facility.

In addition to 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 scale up production to 600,000 EVs annually.