BYD, a Chinese automaker and battery maker, has proposed a $1 billion investment in India to establish manufacturing facilities for electric vehicles and batteries. The investment would be made in partnership with a local company, and would create many jobs, reported Reuters.
BYD already has a presence in India, where it sells the Atto 3 electric SUV and the e6 electric sedan to corporate fleets. The company plans to launch its first electric car for the mass market in India in 2023.
The proposed investment is a sign of BYD's confidence in the Indian electric vehicle market, which is expected to grow rapidly in the coming years. The Indian government has set a target of achieving 30 per cent electric vehicle sales by 2030, and has announced a number of incentives to promote the adoption of electric vehicles.
BYD and Megha Engineering and Infrastructures have submitted a proposal to the Indian government to form a joint venture to manufacture electric vehicles in India, Reuters quoted sources as saying.
Megha Engineering and Infrastructures is a Hyderabad-based infrastructure company that has been involved in the construction of roads, bridges, and power plants.
The longer-term plan for the BYD-Megha joint venture is to build a full lineup of BYD-brand electric vehicles in India, from hatchbacks to luxury models. The joint venture is also considering manufacturing electric buses and trucks in India.
BYD's entry into India is part of the company's aggressive global growth to compete with Tesla, which still leads in electric vehicle sales. If the India investment is approved, BYD will have a presence in all major global auto markets except the United States.
This development comes after Tesla resumed its talks with the Indian government after putting its aspirations to enter the market on hold last year after failing to negotiate lower tax levies on imported vehicles in negotiations with officials.
BYD plans to scale up to production of 100,000 electric vehicles annually in India over a few years, Reuters quoted sources as saying. However, the company would likely begin by shipping vehicles in parts for assembly in the country as it works to build up a supply chain. This is a common practice for automakers entering new markets, as it allows them to get their products to market more quickly and cheaply.
The investment proposal also includes a plan by BYD and Megha to set up charging stations in India and build research and development and training centres. This is a necessary step to support the growth of the electric vehicle market in India. Charging stations are essential for EV owners to be able to charge their vehicles, and research and development centres are needed to develop new technologies for electric vehicles.
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