Chinese electric vehicle (EV) giant BYD is reportedly planning to set up a manufacturing facility near Hyderabad with an estimated investment of $10 billion, implemented in phases. The project, initially proposed in collaboration with Olectra Greentech, a subsidiary of the MEIL Group, was agreed upon in 2022-23. However, it faced delays due to security concerns raised at the central government level.
Source : Internet
According to sources within the Telangana government, the Union Home Ministry no longer has any objections to the project. Speaking to TNIE, officials mentioned, “When this proposal was first discussed two years ago, security concerns were cited as a reason for the objection. However, we have now been informed informally that these concerns have been addressed, and there are no further objections.”
As of now, no official confirmation has been issued by the central government. However, sources indicated that BYD is still collaborating with Olectra Greentech, which has been manufacturing and supplying electric buses in Hyderabad using BYD’s technology for several years.
If the project moves forward as planned, Telangana stands to gain one of the largest private investments in the EV sector. This would also make the state the first in India to host a BYD production facility. Additionally, the initiative could lead to the establishment of supporting industries focused on EV component manufacturing, further strengthening Hyderabad’s position as an automotive hub.
The Telangana government has reportedly suggested three potential locations near Hyderabad for the factory, and BYD representatives are currently assessing these sites before finalizing a decision.
Despite its presence in India for several years, BYD has not yet been able to establish a local production unit, relying instead on imports from China. This has led to higher import duties and, consequently, elevated prices for its EVs in the Indian market. Setting up a domestic manufacturing facility would allow BYD to compete more effectively in the country’s growing EV sector.
In 2023, the Indian government had rejected a $1 billion investment proposal from BYD and its Hyderabad-based partner, Megha Engineering and Infrastructures Ltd (MEIL), citing security concerns. However, with the latest developments, the company now appears to be closer to setting up its first Indian manufacturing plant.
