HYDERABAD: Chinese electronic vehicle (EV) manufacturer BYD is likely to set up a production unit near Hyderabad with an investment of around USD 10 billion in phases. The proposal from BYD and Olectra Greentech, a subsidiary of the MEIL Group, was negotiated and agreed upon back in 2022-23. However, the proposal had been stalled due to security concerns at the Union government level.
Speaking to TNIE, sources in the Telangana government said that they had “learnt unofficially that the Union Home ministry has no objection anymore”. “When this project was discussed two years ago, the Home ministry had some concerns related to security issues and objected to it. Now they have no objections to clearing the project,” they added.
There is no official confirmation from the Centre yet. Sources further clarified that BYD continues to collaborate with Olectra Greentech, which has been operating electric buses in Hyderabad for several years. Olectra Greentech manufactures these buses using BYD technology and supplies them across the country.
If all goes as planned, Telangana will secure one of the largest private sector investments in the EV sector, and the facility will make the state the first in India to host a BYD factory. Moreover, the initiative could pave the way for the establishment of ancillary industries to manufacture EV components, thereby creating an automotive cluster around Hyderabad.
It is to be recalled that the state government has reportedly suggested three potential sites for the facility, all located near Hyderabad.
BYD scouting for locations
BYD representatives are said to be evaluating these locations, after which a final decision will be made.
It is noteworthy that, despite being present in India for several years, BYD has not been able to establish a manufacturing facility in the country, relying instead on import of electric vehicles from China. This has resulted in high import duties and subsequently higher prices. Establishing a local unit will improve BYD’s competitiveness in India’s EV market.
In 2023, the Union government had rejected a $1 billion investment proposal from BYD and its Hyderabad-based partner, Megha Engineering and Infrastructures Ltd (MEIL), to set up an EV manufacturing facility. The Ministry of Home Affairs had turned down the joint venture, citing security concerns.
