Warren Buffet-backed Chinese electric carmaker BYD (Build Your Dreams), on Tuesday, launched its first passenger car, an electric sport-utility vehicle (e-SUV), ‘Atto 3’ in India, marking its entry into the mainstream market. BYD already sells electric buses and electric vehicles (EVs) for corporate fleets in the country.
Ketsu Zhang, Executive Director of BYD India, in a statement, said, “BYD has two plants in India covering more than 140,000 sqm with 3,000 employees and a cumulative investment of over $200 million in the country. We are fully committed to India’s goal of achieving net-zero emissions by 2070 and will promote sustainability and zero emissions by introducing pure electric vehicles and the latest technologies.”
BYD’s this move comes amid a wider global push by the Chinese carmaker which is already selling EVs and plug-in electric hybrids in the global markets including Norway, New Zealand, Singapore, Brazil, Costa Rica and Colombia.
BYD's push into India also comes at a time when the South Asian country continues to maintain tight scrutiny of investments coming from bordering nations, including China. Earlier this year, another Chinese carmaker Great Wall Motor had to shelve plans to invest $1 billion in India after it failed to obtain regulatory approvals.
Earlier this year, BYD said it would start selling its passenger EVs in Japan from 2023 and also has plans to set up a facility in Thailand - its latest among 30 others in the United States, Brazil and India - to produce 150,000 cars a year from 2024.
“We intend to sell 15,000 units of BYD-Atto 3 in India over the next year and plan to set up a local manufacturing facility in due course," Zhang added. The Atto 3 will be assembled at BYD’s plant near Chennai. The new e-SUV is expected to be priced at Rs 25 lakh to Rs 30 lakh.
The Shenzhen-based auto and battery producer, which includes Buffett's Berkshire Hathaway as an investor, entered India in 2007 producing batteries and components for mobile phone makers from its plant near the southern city of Chennai.
In 2013, it started building buses in the country with a local Indian partner and in 2021 it launched its e6 EV for sale to corporate fleet operators and owners. In India, BYD e6 has managed to sell 450 units so far, and BYD is hopeful to sell 1,000 units by the end of 2022.
While the EV segment in India is still nascent, it has seen steady growth over the last few years. According to the Federation of Automobile Dealers Association, out of the 2.72 million passenger vehicles retailed in India in FY22, EVs constituted just 17,802 units or 0.65 per cent reporting a jump of almost 257 per cent. Experts say that in every market, the initial 1.5 per cent to 2 per cent EV adoption takes time after which EV adoption picks up at a much faster pace.
Tigor and Nexon EV maker Tata Motors holds an 85 per cent share of the EV car market in FY22 followed by China’s SAIC-owned British brand MG Motors at 11.5 per cent with its ZS EV. Mahindra and Mahindra (M&M) also announced its foray into the EV segment with five new e-SUVs and new Inglo platform. Other carmakers including Hyundai, Kia and Volkswagen have also announced new EV launches.
Closer home, the company has invested $150 million in two plants in India which it sees as a strategic hub in South Asia. Experts say that BYD’s aggressive expansion plans will help the company battle global challenges while acting as a tough competitor to established EV players like Tata Motors and MG Motor.