BYD Plans Rs 85000 Crore Plant In India; But It Sold Just 2800 Units Last Year; What’s The Plan Then?

Chinese automaker BYD is reportedly planning to establish a manufacturing facility for electric cars and batteries in partnership with Hyderabad-based Megha Engineering and Infrastructures Limited. The plan includes building an exhaustive portfolio of BYD-branded electric vehicle and scale up the output to 100,000 EVs annually over a few years.

The move, if true, comes at a time when the company could sell just 2,819 units of Battery electric vehicles (BEVs) in 2024, a 40 percent increase year-over-year. In 2025, the company is anticipating a double-digit growth.

The proposed facility will reportedly be located near Hyderabad, Telangana, and represents an investment of approximately Rs 85,000 crore (around $10 billion). Spanning 500 acres, the plant is expected to achieve an annual production capacity of 600,000 vehicles by 2032. Additionally, BYD intends to set up a battery production unit with a capacity of 20 gigawatt-hours (GWh).

The investment proposal also encompasses setting up charging stations, research and development centers, and training facilities.

Republic Business could not independently verify the development from BYD on its investment plans in India.

BYD is globally the leading EV brand and India is the third largest car market in world. Clearly BYD can eye India in terms of both domestic market and exports to RHD markets. Moreover, India needs a greener solution and BYD has best of multiple technology solutions to revolutionise the car market in India," said Puneet Gupta, Director, S&P Global Mobility

It is pertinent to note that BYD's expansion efforts in India have encountered regulatory challenges. In 2023, a joint proposal by BYD and Hyderabad-based Megha Engineering and Infrastructures Ltd to invest $1 billion in an EV and battery manufacturing plant was not approved by the Indian government due to security concerns.

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