BYD’s $1Bn Indian BEV Production Expansion
As government regulators in Europe and the US attempt to reduce BEV component reliance on China, its automakers are increasingly flexing their financial muscle globally.
The latest is BEV giant BYD which has submitted a $1Bn investment joint venture proposal to build electric cars and batteries in India in partnership with a local company, Reuters reports. Together with the privately held Megha Engineering and Infrastructures company in Hyderabad, BYD has submitted a proposal to Indian regulators for an industrial joint venture.
The JV plans to build a full line-up of BYD-brand electric cars in India from hatchbacks to luxury models. Reuters states that BYD, the world’s largest producer of BEVs and plug-in hybrid vehicles, did not immediately respond to a request for comment. However, the company previously said it planned to set up manufacturing in India, now the world’s third-largest car market. The investment proposal also includes a plan by the two companies to set up charging stations and build research and development and training centers.
BYD’s push into India is also seen as part of its rapid global expansion to challenge Tesla which still leads in sales of BEVs alone. If the India investment is approved, it would give BYD a presence in all major global car markets with the exception of the US. BYD has already invested $200M in India where it sells two BEVs, the Atto 3 SUV and the e6, to corporate fleets and plans to launch its Seal luxury sedan this year.
— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_ and Threads
The government of India is expected to scuttle any major People’s Republic of China (PCR) investments, especially as the PRC has illegally annexed territory in its seven decade old boundary tension with India. Also, there is the complete lack of transparency in the business strategy, governance, operations of PRC firms, in the context of coercive business practices and political manipulation. It is very surprising to see an Indian firm collaborating with a PRC firm, given the background of politico-economic tension currently. Maybe it got tempted by the vast profits that it sees in future, as compared to those that can be had with western EV manufacturers, or even by developing its own technology?