Chinese electric vehicle (EV) manufacturer BYD is gearing up to establish its first production unit in India, near Hyderabad. This strategic move positions Telangana as the first Indian state to host a BYD factory. With full support from the Telangana government, including land allocation, the project is expected to become a significant milestone in India’s EV sector.
Telangana Government Backs BYD’s EV Expansion
The state government has identified three potential locations near Hyderabad for the plant, with BYD representatives currently assessing them. Once finalized, an agreement between the company and Telangana authorities will pave the way for one of the largest private-sector investments in the EV industry. The factory’s establishment is likely to stimulate the growth of ancillary industries producing EV components, creating an automotive cluster around Hyderabad.
BYD’s First Manufacturing Unit in India
BYD has been present in India for several years but has yet to build a manufacturing unit. Currently, its electric vehicles are imported from China, attracting high import duties that make them costly. Establishing a local production facility will significantly reduce costs, making BYD EVs more affordable and competitive in the Indian market.
Over the past two years, BYD has explored options for setting up a factory in India, but regulatory restrictions on Chinese investments had delayed the process. 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 EV plant in Telangana. However, recent policy adjustments have enabled BYD to move forward with its expansion plans.
Strong Ties with Olectra Greentech
BYD already collaborates with Olectra Greentech, a subsidiary of MEIL, which manufactures and supplies electric buses in India using BYD technology. This partnership may have played a key role in BYD’s decision to establish its EV factory in Telangana.
Expansion Plans: Battery Production and More
Beyond vehicle assembly, BYD is also planning a 20-gigawatt battery manufacturing plant in India. The company aims to ramp up its production capacity to 600,000 EVs annually over the next five to seven years. This large-scale investment follows BYD’s recent milestone of surpassing Tesla in revenue, generating approximately $107 billion (₹9.20 trillion) compared to Tesla’s $97.7 billion (₹8.40 trillion).
BYD’s Technological Innovations
BYD is driving innovation in the EV sector with cutting-edge technology, including a 1 MW flash charger capable of fully charging an EV in just 5-8 minutes, offering a range of up to 400 km per charge. Such breakthroughs position BYD as a leader in next-gen electric mobility.
Conclusion: A Boost for India’s EV Ecosystem
BYD’s decision to establish a manufacturing unit near Hyderabad marks a transformational shift for India’s EV industry. Telangana is set to become a crucial hub for EV production, attracting investments, creating jobs, and accelerating the country’s transition toward sustainable transportation.
