Despite reports on discussions with the Telangana government for a potential facility, BYD denies reports of a $10 billion EV plant in India, calling them “untrue.”
Chinese electric vehicle (EV) manufacturer BYD has denied reports suggesting it plans to build a factory in India. The company issued a statement on its WeChat account, labelling the claims as “untrue.”
Earlier this week, multiple reports surfaced that BYD was set to invest around $10 billion to establish a production plant in Hyderabad. However, the company clarified that no such investment or agreement had been reached.
While BYD has been expanding in international markets like Southeast Asia, South America, and Europe, it has not yet announced any significant manufacturing projects in India. The company operates in India through its subsidiary, BYD India, focusing primarily on electric buses and passenger vehicles.
Reports last week indicated that BYD had held detailed discussions with the Telangana government, which had allegedly offered full support for the project, including land allocation. The government was said to have identified three potential sites near Hyderabad for the proposed facility, with BYD representatives reportedly evaluating these locations.
Despite its operations in India for several years, BYD has not yet established a domestic manufacturing base. The company currently imports its electric vehicles from China, subject to high import duties, which increases the cost of its products and limits its market share.
Setting up a local manufacturing facility would significantly reduce costs, potentially boosting BYD’s competitiveness in India’s rapidly growing EV market. The company has been exploring the possibility of building a plant in India for the past two years, but has faced regulatory hurdles.
In 2023, the Indian government rejected a $1 billion investment proposal from BYD and its local partner, Megha Engineering and Infrastructures Ltd. (MEIL), to establish an EV manufacturing facility in Telangana. The proposal, worth ₹82 billion, was under review by multiple Indian ministries before it was ultimately declined.
Read the earlier report: BYD Gears Up For ₹850B Expansion In India, New Challenge For Tesla?
