Just like its economy, India’s electric vehicle (EV) market is a developing one with several domestic as well as foreign players already invested. Among the most prominent foreign OEMs who have invested in the Indian EV market is BYD. Despite its Chinese heritage, BYD has shown growing commitment by launching fully-imported premium EVs at reasonable price tags.
The prices of BYD models may drop in the future as the company has decided to set up a manufacturing facility in India. As per a recent report by ETV Bharat, the Chinese EV brand will reportedly establish a production unit near Hyderabad, making this the first BYD manufacturing unit in the country.
Currently, BYD operates a small assembly base in Tamil Nadu from where the company rolls out its electric buses. Reports of BYD eager to set up a local manufacturing unit first surfaced in October 2024 although there were no details attached to this project. The latest report shares that BYD is considering an investment of Rs 85,000 crore ($10 billion) in Hyderabad to build a production unit for EVs in India.
The company has reportedly been scouting locations in Telangana to set up this proposed infrastructure, and chances are that Hyderabad can be the final spot. According to the report, the facility in India will cover more than 500 acres and will have the capacity to produce 600,000 vehicles by 2032. Additionally, BYD is also working on setting up a battery production unit that will offer a capacity of 20 GWh.
Establishing a factory of this scale is expected to help the brand reduce vehicle costs and strengthen its position in the market. If this project comes to fruition, Telangana has the potential to become India’s EV manufacturing hub. To encourage EV adoption in the state, the Telangana government recently launched a new EV policy, offering significant incentives. The policy includes a full exemption from road tax and registration fees for all types of EVs and will remain in effect until December 31, 2026.
BYD India expansions: More dealerships, new models
BYD has been eyeing nationwide expansion in India for a long time. Last year, the company operated 27 dealerships across the country and by the end of this year intends to expand to 47 outlets with a focus to enter tier II cities while maintaining a presence in major cities.
Besides expansion in footprint, BYD also has its eyes in the growing mass-market EV segment with a sub-Rs 20 lakh model reportedly under development. A local production facility will certainly help the company to bring down developmental and product costs. Further, the benefits of a lower production cost and government incentives will most likely be transferred to the consumers with an affordable price tag.
Currently, BYD offers five models in India including the eMax7 MPV, the Atto 3 SUV, the Seal sedan, and the Sealion 7 crossover with the range starting from Rs 24.99 lakh (ex-showroom). Besides the models mentioned above, BYD has also filed patents for Bao 3 compact SUV which could be an attractive all-electric offering in the sub-Rs 20 lakh space.
Source: ETV
