- 28 Mar 2025
- ICICIdirect Research
CHINESE ELECTRIC VEHICLE MANUFACTURER BYD IS SET TO ESTABLISH ITS FIRST MANUFACTURING FACILITY IN INDIA NEAR HYDERABAD
News: According to media sources, Chinese electric vehicle manufacturer BYD is set to establish its first manufacturing facility in India near Hyderabad, Telangana, with a planned investment of approximately ₹85,000 crore ($10 billion). This move follows extensive discussions with the Telangana government, which has proposed three potential sites for the factory and assured support, including land allocation. The facility is expected to cover 500 acres and have an annual production capacity of 600,000 vehicles by 2032, significantly enhancing BYD's competitiveness in India's EV market by reducing costs associated with high import duties. Additionally, BYD plans to set up a 20-gigawatt battery manufacturing unit as part of its expansion strategy.
View: BYD has a proven history of disrupting the domestic markets wherever they have ventured into leading to pressure on sales volume for other OEM’s. Given their technology prowess in the electric vehicle space, though it is good from the consumer standpoint, however it will likely result in formidable competition for domestic OEM’s which have stepped up the play in EV domain. Though the execution of such large plans takes time and we are unsure of the timelines to be accomplished, this is sentimentally negative for domestic EV players especially M&M and Tata Motors.
Impact: Negative