BYD proposes $1 bln India plan to build EVs, batteries - sources

Olectra Greentech

14/07/2023 09:25

(Adds details, context in paragraphs 12-17)
    By Sarita Chaganti Singh and Aditi Shah
       NEW DELHI, July 14 (Reuters) - China's BYD Co
 002594.SZ  has submitted a $1 billion investment proposal to
build electric cars and batteries in India in partnership with a
local company, three people with direct knowledge of the plan
told Reuters.
    BYD and privately held Hyderabad-based Megha Engineering and
Infrastructures have submitted a proposal to Indian regulators
to form an EV joint venture, the people said, asking not to be
named because the application is private.
    The longer-term plan is to build a full line-up of BYD-brand
electric cars in India from hatchbacks to luxury models, one of
the three people said. 
    BYD, the world's largest producer of EVs and plug-in hybrid
vehicles, did not immediately respond to a request for comment.
The company previously said it planned to set up manufacturing
in India, now the world's third-largest car market.
    India's commerce and heavy industries ministries did not
immediately reply to a request for comment.    
    BYD's push into India is part of its rapid global expansion
to challenge Tesla  TSLA.O , which still leads in sales of EVs
alone. If the India investment is approved, it would give BYD a
presence in all major global car markets with the exception of
the United States. 
        Tesla has recently restarted talks with India's
government after putting on hold plans to enter the market last
year when it failed to secure lower tax duties on imported
vehicles in talks with officials. 
    BYD has already invested $200 million in India where it
sells the Atto 3 electric SUV and the e6 EV to corporate fleets,
and plans to launch its Seal luxury electric sedan this year. 
    The total production capacity proposed by BYD was not
immediately clear.
    The maker of Blade batteries as well as finished EVs has
plans to scale up to production of 100,000 EVs annually in India
over a few years but would likely begin by shipping vehicles in
parts for assembly in the country as it works to build up a
supply chain, one of the sources said.
    The investment proposal also includes a plan by BYD and
Megha Engineering to set up charging stations in India and build
research and development and training centres, the sources said.
    The joint proposal comes amid stricter investment rules.
Since 2020, India has tightened scrutiny of investments from
neighbouring countries, including China.
        Those controls forced China's Great Wall Motor
 601633.SS  to shelve a plan to invest $1 billion in the Indian
market and  pushed Chinese state-owned automaker SAIC's
 600104.SS  MG Motor unit to look for a local partner.
        Shenzhen-based BYD entered the Indian market in 2007
producing batteries and components for mobile phone makers.
        In 2013 it started building electric buses with Megha
Engineering, under a joint venture company called Olectra
Greentech  OLEC.NS .
    BYD, which stands for Build Your Dreams, sold a total of
1.86 million BEVs and plug-in hybrids in 2022. In India, EVs
made up just over 1% of total car sales of 3.8 million in 2022
but the government wants to grow this to 30% by 2030. 
    In India, BYD will compete with domestic automaker Tata
Motors  TAMO.NS  and Chinese rival MG Motor that currently
dominate electric car sales.

 (Reporting by Sarita Chaganti Singh and Aditi Shah in New
Delhi; Additional reporting by Zoey Zhang in Shanghai and
Shivangi Acharya in New Delhi; Editing by Kevin Krolicki and
Jacqueline Wong)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
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