BYD plans to establish its inaugural electric vehicle factory in India, Targets production capacity of 6 Lakh cars annually

Chinese manufacturer BYD is all set to expand their production operations in India by setting up a highly advanced manufacturing plant near Hyderabad. This will make Telangana, the first Indian state to get a BYD plant. This decision has come after having several discussions with the state government. 

Telangana Government has suggested three potential locations to establish the factory, which are all situated near Hyderabad. BYD representatives are analysing these locations and the final decision will be made afterwards. 

Once confirmed, there will be an agreement between BYD and the state government, and if the project is successful, as planned, the Telangana government will secure one of the largest private sector investments in the EV industry. Further, this investment will also boost up the ancillary industries which manufacture EV components, thus establishing a huge automotive network around Hyderabad.

BYD's inaugural production facility in India

Despite having a good presence in the Indian EV industry, BYD does not have a manufacturing plant in India. At the present moment, it imports EVs from China, facing elevated import taxes that lead to increased costs. 

This has limited the company’s growth in the Indian EV markets. Thus establishing a local manufacturing plant would significantly reduce costs, which will result in increased sales and pricing BYD cars competitively in the Indian market. For the past two years, BYD has been exploring options to set up their plant in India, but due to strict regulations, their plans are delayed. 

The joint alliance between BYD and Telangana government aimed to set up the plant in Telangana with an estimated cost of 8,200 crores. The proposal was also submitted to the commerce and industry ministry and was carefully analyzed by the ministers of heavy industries, external affairs and home affairs, before being rejected. 

Growth strategies: Enhancing battery manufacturing and beyond

Apart from vehicle manufacturing, BYD is also planning to set up a 20-gigawatt battery manufacturing facility in India. Their vision is to expand the production capacity to 6 Lakh EVs annually. This vision needs significant investments from BYD, which has recently beaten Tesla in revenue. 

Tesla is facing a big drop in sales in China and Europe, as BYD is constantly evolving by undergoing technological advancements and integrating cutting-edge technology in their cars.

BYD recently unveiled their 1 MW flash charger, which is capable of charging a vehicle in just 5-10 minutes. This allows the EVs to increase their capabilities and allows them to travel up to 400 Km on a single charge, possibly revolutionizing the future of electric transportation.