BYD Seeks Approval to Manufacture EVs and Batteries in India, According to Report
“BYD Submits $1 Billion Proposal for EV and Battery Production in India, Aims for Significant Market Presence”
BYD has reportedly submitted a $1 billion investment proposal to a local company in India, seeking to establish a partnership for the production of electric vehicles (EVs) and batteries in the country, as stated by Reuters.
(Image credit: Auto in China)
According to the report, BYD (OTCMKTS: BYDDY) and privately held Megha Engineering and Infrastructures have jointly presented a proposal to Indian regulators to establish an EV joint venture. The long-term objective is to manufacture a comprehensive range of BYD-branded EVs in India, including hatchbacks and luxury models. BYD had previously expressed its intention to establish a production base in India.
The investment proposal also outlines plans for BYD and Megha to establish charging stations, research and development facilities, and training centers in India.
India currently stands as the world’s third-largest auto market, and if BYD’s plan is approved, it will mark the company’s presence in major auto markets worldwide, with the exception of the US.
BYD aims to ramp up its annual EV production in India to 100,000 units within a few years. As it sets up its supply chain, the company is likely to initially ship auto parts to India for assembly, according to the report.
Notably, Chinese automotive media outlet Yiche reported on December 6, 2022, that BYD’s Indian plant witnessed the production of the first Atto 3 model, which was assembled through the Semi Knocked Down (SKD) process. SKD refers to exporting semi-finished products or components to an overseas plant, where the local facility completes the assembly and sells the vehicles.
BYD officially launched the Atto 3 in India on October 11, 2022, marking its entry into the passenger car market. Prior to that, the Chinese NEV giant had been supplying electric buses and EVs to corporate customers in India.
At the time of the launch, BYD promised the delivery of the first 500 units to Indian consumers starting from January 2023.
“We aim to sell 15,000 units of the BYD Atto 3 in India over the next year and plan to establish a local manufacturing facility in due course,” stated Ketsu Zhang, BYD India Executive Director. Zhang added that the company had already invested over $200 million in India.
The BYD Atto 3, known as the Yuan Plus in China, had its official launch in BYD’s domestic market on February 19 and is currently available in several countries.