China's BYD plans $1B joint venture to make EVs in India - report
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China's BYD (OTCPK:BYDDF) has filed a $1B investment plan to make electric cars and batteries in India in collaboration with Indian company Megha Engineering and Infrastructures, Reuters reported citing three people with knowledge of the matter.
BYD and Megha, which is based out of Hyderabad in the Indian state of Telangana, have filed a proposal to Indian regulators to form an EV joint venture, the report added.
The longer-term vision is to make a full line-up of BYD-brand EVs in India from hatchbacks to luxury models.
BYD had previously noted that it planned to establish production in India, according to the report.
BYD's push into India is part of its worldwide expansion plans to compete with Tesla (TSLA), which still leads in sales of EVs alone. If the India investment is approved, it would give the Chinese company a foothold in all major global car markets, except the U.S., the report noted.
In June, Indian Prime Minister Narendra Modi met Tesla CEO Elon Musk after which the billionaire hinted at making Tesla (TSLA) available in India "as soon as humanly possible." In May, Tesla had proposed setting up a factory in India to build electric cars for domestic sale and export. The plans went on hold last year after deadlock on tariffs.
BYD has already invested $200M in India where it sells the Atto 3 electric SUV and the e6 EV to corporate fleets. The company also intends to introduce its Seal luxury electric sedan this year, the report added.
The investment plan by BYD and Megha also includes to build charging stations in India and set up research and development and training centres.
BYD intends to boost production to 100K EVs per year in India over a few years but would likely start by shipping vehicles in parts for assembly in the Asian nation as it works to build up a supply chain, the report noted.
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