Chinese EV giant BYD is moving ahead with an ambitious plan to build electric cars in India, according to news reports. BYD, which leads the Chinese EV race, has submitted a $1 billion proposal under which it seeks to make electric cars and batteries in India, Reuters reported.
BYD, which is the the world's largest producer of EVs and plug-in hybrid vehicles, is partnering with a South India-based company known as Megha Engineering and Infrastructures to launch the India plan, sources told the agency. As per the plan, BYD will present a full line-up of its electric vehicles in India in the long run.
However, the Indian authorities have not responded to requests for comments on the development.
India, which is the world's third-largest car market, has adopted an aggressive EV policy, under which it aims to sell only electric cars by 2030.
BYD, Tesla and SAIC-GM Wuling emerged as the biggest EV players in the world. They accounted for 36 percent of the market in 2022, data released by IDC showed.
China Leads
China continued to drive the EV market, even as the government continued to promote electric vehicles in the backdrop of high oil prices. Besides, the government's assistance, car companies offered subsidies and price-guaranteed promotions. According to IDC, EV companies in China sold 7 million units.
BYD's Rise
One of the key reasons behind the rise of BYD is the support of the Chinese government. The company directly benefits from Beijing's policy of incentivizing buyers of electric vehicles to reduce the country's carbon footprint. BYD is now the largest selling Chinese carmaker.
In China, the New Energy Vehicles category includes plug-in hybrid vehicle, which also have an internal combustion engine, and purely battery operated vehicles. While BYD sells both plug-in hybrids and pure-electric vehicles, Tesla sells only battery-operated vehicles.
Tesla to Come to India?
The reports of BYD's possible entry into India comes a day after it was reported that high-level Tesla executive held discussions with the Indian authorities over the US auto giant's arrival in India.
Tesla has started negotiations with the Indian authorities about the potential establishment of manufacturing facilities in the country, the Indian media reported. Elon Musk's flagship company had teased the Indian arrival earlier, although it had maintained that it needed incentives and tax benefits in India.
The high-level meeting particularly focused on the incentives framework if the company were to establish a manufacturing unit in India. The meetings were attended by executives from both Tesla in the US and Tesla India, according to the ET. The global electric car leader does not have a footprint in India, despite it being one of the biggest automobile markets in the world. This might change soon if Tesla and New Delhi arrive at consensus in certain points of dispute that prevented the global EV leader's entry into the Indian market.
