Chinese BYD Co. Wants to Invest a Billion Dollars in India

China’s largest electric vehicle automaker and second in the world after Tesla wants to launch a joint venture in India that will manufacture cars and batteries.

BYD Co., China, which ranked second in 2023 as an electric-powered vehicle manufacturer in the world, has made an investment proposal worth one billion dollars to the competent authorities in India. According to the news agency Reuters, this would be a joint venture with a private Indian company Megha Engineering and Infrastructures of Hyderabad, specializing not only in the production of electric vehicles but also batteries. “The long-term plan is to manufacture a wide variety of electric vehicles in India, from hatchbacks to luxury SUVs,” told the agency a “well-informed” Indian source.

The proposal made by Chinese manufacturer BYD (acronym for “Build Your Dreams”) to the New Delhi authorities is part of BYD’s global rapid expansion strategy that aims to challenge Tesla, which currently dominates in the global electric vehicle industry. If the Indian government approves the Chinese proposal, BYD will ensure not only a sales but also a manufacturing presence in every major car market of the world, except the United States. BYD has already invested $200 million in India, where it currently sells the Act 3 electric-powered SUVs and the E6 EV hatchback that is very popular in the corporate fleet. The Seal luxury sedan is expected to be exported to India in 2023.

According to Reuters, Tesla is not resting on its laurels either and “recently resumed negotiations with New Delhi, after suspending its plan to land in the Indian market.” The reason is that in the previous round, Elon Musk’s company failed to get a response to a “meaningful reduction” in customs duties on imports of “Made in USA” electric vehicles into India.