China’s BYD Auto, which makes the most electric cars in the world, is looking into contract manufacturing and expanding its assembly operations in India so it can build more electric cars there. This is because India has tightened its rules on foreign investment in countries that share a land border with it. Chinese electric vehicle maker BYD.
Sanjay Gopalakrishnan, senior vice-president of electric passenger vehicle business at BYD India, said that the company is looking into a number of ways to make EVs in India.
In response to Chinese troops moving into the Ladakh region, India became more careful about Chinese investments.
In May 2020, Indian and Chinese troops fought along the disputed Himalayan border. At least 20 Indian soldiers and an unknown number of Chinese soldiers were killed.
Several Chinese companies’ plans to invest in India
Several Chinese companies’ plans to invest in India have been ruined by these events. For example, Great Wall Motor shut down its operations in India earlier this year after its $1 billion investment plan was rejected by the government.
BYD can put together up to 10,000 units per year in Chennai, India. This number can be increased to 15,000 units.
BYD Auto delivered more than 200,000 electric vehicles around the world in September. This made it the world’s largest EV maker, passing Tesla.
The company, which is backed by Warren Buffett, is also bringing in passenger cars through imports. This is different from Tesla, which asked the government to lower import duties so it could start local operations.
Gopalakrishnan said that the Shenzhen-based company wants to have 40% of India’s EV market by 2030. This is a big goal.
If India’s passenger vehicle market is 5.5 million units by the end of the decade and EVs have a 25% share, BYD will need to sell 55,000–60,000 units a year to reach its goal.
To reach this level of sales, the company needs to set up factories in India.
Gopalakrishnan said, “In the next two years, we will focus on how we can make 10,000-15,000 units per year in our assembly plant.” He also said, “Based on market demand, we will look into manufacturing facilities in India.”
He didn’t say how much the company plans to invest or how much it wants to build.
“We could look into different options, such as contract manufacturing and assembly manufacturing” (to increase capacity in the interim). That’s what we’re thinking right now, but let’s see how demand goes over the next year. “The first six months after a product comes out are the most important,” Gopalakrishnan said.
The company that makes electric vehicles (EVs) released its first electric passenger car for the Indian market, the Atto 3 e-SUV, on Tuesday.
Even though BYD won’t say how much the electric SUV will cost for a month. Gopalakrishnan said that the product would be at the top of the market.
Gopalakrishnan said that BYD expects to sell almost 15,000 units of the Atto 3 and the e6 by the end of next year in India.
BYD is already one of the biggest electric bus companies in India. This is because it has a partnership with Olectra. A unit of Megha Engineering and Infrastructures Ltd, which uses BYD parts and technology to make its buses.