BYD to Launch First India EV Plant, Targets 600K Cars per Year

Chinese electric vehicle (EV) manufacturer BYD is preparing to set up a production unit near Hyderabad, according to a report by ETV Bharat on Thursday. This would make Telangana the first Indian state to host a BYD factory. The decision reportedly follows extensive discussions with the state government, which has assured its full support, including land allocation, for the project. 

The Telangana government, according to the report, has suggested three potential sites for the facility, all located near Hyderabad. BYD representatives are currently assessing these locations, after which a final decision will be made.

Once confirmed, an agreement is expected to be signed between the company and the state authorities. If the project proceeds as planned, Telangana will secure one of the largest private sector investments in the EV sector. Furthermore, the initiative could pave the way for the establishment of ancillary industries manufacturing EV components, creating an automotive cluster around Hyderabad.  

The joint venture aimed to set up the plant in Telangana with an estimated investment of ₹8,200 crore. The proposal was submitted to the commerce and industry ministry and subsequently reviewed by the ministries of heavy industries, external affairs, and home affairs before being rejected.

However, with recent policy adjustments easing restrictions, the company appears to be moving forward with its expansion plans. Additionally, it currently has an established technical partnership with Olectra Greentech, a subsidiary of the MEIL Group, 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. Industry analysts believe this existing collaboration may have influenced BYD’s decision to choose Telangana for its new facility.