BYD has submitted a $1 billion investment proposal to partner with a local company to produce EVs and batteries in India, according to Reuters.
(Image credit: CnEVPost)
BYD (OTCMKTS: BYDDY) has submitted a proposal for a $1 billion investment to produce electric vehicles (EVs) and batteries in India in partnership with a local company, Reuters said in a report today, citing three people familiar with the matter.
BYD and privately held Megha Engineering and Infrastructures have submitted a proposal to Indian regulators to form an EV joint venture, according to the report.
The longer-term plan is to produce a full range of BYD-branded EVs in India, from hatchbacks to luxury models, the report said, adding that BYD had previously said it planned to set up a production base in India.
The investment proposal also includes a plan for BYD and Megha to set up charging stations and build research and development and training centers in India, according to the report.
India is currently the world's third-largest auto market, and if BYD's plan is approved, the company will have a presence in the world's major auto markets except the US, the Reuters report noted.
BYD plans to increase its annual EV production in India to 100,000 units in a few years, but in the process of setting up its supply chain, it is likely to first ship auto parts to India for assembly, according to the report.
Notably, Chinese automotive media outlet Yiche reported on December 6, 2022 that BYD's plant in India saw the first Atto 3 roll off the assembly line, with the model being produced through SKD (Semi Knocked Down) assembly.
SKD refers to when a car company exports semi-finished products or components to a country where an overseas plant is located and the local plant assembles the vehicle and sells it.
BYD launched the Atto 3 in India on October 11, 2022, officially entering the country's passenger car market. Prior to that, the Chinese NEV giant was already selling electric buses and EVs in India to corporate customers.
The company promised at the time that the first 500 units would be delivered to Indian consumers from January 2023 onwards.
"We intend to sell 15,000 units of BYD Atto 3 in India over the next year and plan to set up a local manufacturing facility in due course," BYD India Executive Director Ketsu Zhang said in a statement, adding that the company had invested more than $200 million in India.
The BYD Atto 3, known in China as the Yuan Plus, was officially launched in BYD's home market on February 19 and is now available in many countries.