Chinese auto and battery manufacturer BYD has proposed investing $1 billion in India to build factories for electric cars and batteries. According to Reuters, the investment would be undertaken in collaboration with a local business and would lead to the creation of numerous employment.
BYD is already present in India, where it offers corporate fleets the Atto 3 electric SUV and the e6 electric car. In India, the business intends to release its first mass-market electric vehicle in 2023.
The proposed investment demonstrates BYD’s belief in the Indian market for electric vehicles, which is anticipated to experience tremendous growth in the years to come. The Indian government has established a series of incentives to encourage the adoption of electric vehicles and has set a target of 30 percent electric vehicle sales by 2030.
BYD joins hands with Megha Engineering
According to sources cited by Reuters, BYD and Megha Engineering and Infrastructures have proposed establishing a joint venture to produce electric vehicles in India. A Hyderabad-based infrastructure business called Megha Engineering and Infrastructures has built power plants, roads, and bridges.
The BYD-Megha joint venture’s long-term goal is to produce a whole line of BYD-brand electric cars in India, ranging from hatchbacks to luxury sedans. In India, the joint venture may also produce electric trucks and buses.
As part of its aggressive worldwide expansion strategy to challenge Tesla, which still dominates the market for electric vehicles, BYD has expanded into India. Except for the United States, the company will be present in all significant international auto markets if investment in India is allowed.
This development comes after Tesla, which had put its plans to enter the market on hold last year after failing to reduce the tax levies on imported vehicles in negotiations with officials, resumed its discussions with the Indian government.
According to sources cited by Reuters, BYD intends to increase production in India over the next few years to 100,000 electric vehicles yearly. To establish a supply chain, the company would probably start by bringing in automobile parts to be assembled locally. For automakers entering new countries, this is a frequent practise because it enables them to sell their products more swiftly and affordably.
The investment proposal also outlines BYD and Megha’s plans to construct training and R&D facilities as well as charging stations in India. This is an essential step to help India’s electric vehicle market expand. For EV owners to be able to charge their cars, charging stations are necessary, and research and development facilities are required to create new electric vehicle technology.
