As BYD plans an India expansion, its supposed ₹850 billion EV factory in Hyderabad could shake up the local EV market, challenging Tesla’s delayed entry, with more affordable electric cars.
Chinese electric vehicle (EV) giant BYD is reportedly set to establish a massive electric vehicle (EV) manufacturing facility in Hyderabad, Telangana, with an investment of ₹850 billion ($10 billion).
The plant, spanning 500 acres (almost 202.35 hectares), will have the capacity to produce 600,000 vehicles annually by 2032, along with a 20 GWh battery production unit.
As India and China’s ties thaw, this move signals BYD’s intent to solidify its presence in the rapidly growing Indian EV market. The facility, if confirmed, will be a key player in reducing vehicle prices, making EVs more accessible to Indian consumers.
The Telangana government is also offering substantial incentives, including full exemption from road tax and registration fees for all EVs until 2026, to attract such investments.
Incidentally, Tesla, the American EV giant, is still preparing its entry into India. Despite plans to open a showroom in Mumbai and set up a manufacturing plant in Maharashtra, Tesla’s delayed entry has allowed Indian EV makers like Tata and Mahindra, along with partnerships such as JSW’s tie-up with MG Motor, to gain significant ground.
According to a report by the Economic Times, Tesla’s prospects in India are further complicated by the rise of BYD, which has already made a global impact by offering affordable and efficient vehicles.
If BYD moves ahead with the Hyderabad plan, it will face less resistance from geopolitical factors, as the diplomatic relations between India and China show signs of improvement.
This potential expansion might make it even harder for Tesla to capture a significant share of the Indian market, where price-sensitive consumers are gravitating towards cost-effective EV options.
