Hyderabad: Chinese electric car giant BYD is preparing to establish an electric car unit near Hyderabad. The project would make Telangana the first Indian state to host a BYD factory. The company announced its decision to proceed with the project following extensive discussions with the state government. The Telangana government appears to have assured all kinds of support, including the allocation of necessary land for the venture.
The state government has proposed three suitable locations to BYD for setting up a unit in the vicinity of Hyderabad. Representatives of the company are examining all three, following which a final decision will be made, and an agreement could be signed with the state government for the project. If this comes to fruition, Telangana state will have the credit of securing the largest private sector project as well as a sizeable investment in the electric car segment. Additionally, the project could also lead to the development of subsidiary units in the vicinity for the production of electric car parts, giving birth to an electric vehicle cluster near Hyderabad.
BYD’s First Unit in India
Despite operating in India for years, BYD does not currently have manufacturing units in the country. At present, the company imports electric cars from China, which faces high import duties, leading to the high prices of BYD cars in India. As a result, the company is not experiencing the kind of success in the country as it would have hoped. If BYD is able to manufacture electric cars in the country, it will be able to offer these cars at a much lower cost. This may allow BYD to increase sales significantly and compete well in the sector.
BYD has been working to set up its own unit in the country for the past two years. However, it has not been possible so far due to the central government’s strict regulations of Chinese investments. However, with recent policy relaxations, the path for the BYD project appears to have been paved.
BYD has a long standing technical partnership with Olektra Greentech, an MEIL group company that has been operating electric buses based in Hyderabad for years. Olektra Greentech produces electric buses using BYD technology and supplies them across the country. Industry sources believe that this is one of the reasons why BYD chose Telangana state to set up its electric car unit.
Plans for a Battery Plant and More
In addition to the car assembly plant, BYD plans to establish a 20-gigawatt battery plant in India. Over the next five to seven years, the company aims to scale operations to produce up to 600,000 electric cars annually. This phased expansion involves substantial investments from BYD, which recently surpassed Tesla in revenue, recording $107 billion (approximately ₹9.20 lakh crore) compared to Tesla’s $97.7 billion (approximately ₹8.40 lakh crore).
With Tesla witnessing declining sales in China and Europe, BYD continues to grow, having introduced groundbreaking technology like a 1 MW flash charger capable of fully charging a car battery in just 5-8 minutes. This innovation allows a single charge to cover 400 km, potentially revolutionizing the electric vehicle market.
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