The Telangana government’s strong support is a key factor in BYD’s interest in establishing a manufacturing facility. Currently, officials are evaluating three potential sites near Hyderabad. Telangana’s proactive approach, including its that waives road tax and registration fees until December 31, 2026, has positioned the state as a leading destination for electric vehicle manufacturers.
BYD’s move to establish a manufacturing facility in Telangana follows earlier regulatory challenges. In 2023, the Indian government turned down a prior $1 billion investment plan with Megha Engineering and Infrastructures Ltd (MEIL) because of strict regulations on Chinese investments. Recent policy reforms, however, have opened the door for BYD’s new expansion plans.
The firm’s current technical association with Olectra Greentech, a MEIL group company that produces electric buses based on BYD technology in Hyderabad, is said to have impacted its location decision. This existing collaboration gives a solid base for BYD’s future operations in the region.
