[Sri0030]

China-based electric vehicle manufacturer BYD is reportedly preparing to establish a factory in Hyderabad. According to available information, ongoing discussions between BYD and the government have yielded positive results. The government has assured BYD of complete support for setting up its unit, including the allocation of necessary land.

The government has proposed three locations within Hyderabad for the unit, which are currently being evaluated by representatives from BYD. Once a site is selected, a formal agreement with the government is expected to follow.


Source: https://www.ap7am.com/en/97633/major...ses-unit-setup

[yedukrishnan199]

This looks quite promising; however, with India-China relations being strained, projects like these involving Chinese companies would surely face scrutiny due to national security concerns and public sentiment.

Moreover, the Indian Government's past actions towards BYD investing in the country haven't been favourable either unless they go the JSW-MG route and get a local partner.

[carjack3090]

Originally Posted by yedukrishnan199

This looks quite promising; however, with India-China relations being strained, projects like these involving Chinese companies would surely face scrutiny due to national security concerns and public sentiment.

Moreover, the Indian Government's past actions towards BYD investing in the country haven't been favourable either unless they go the JSW-MG route and get a local partner.

If this news is authentic then they are trying it out again with Megha Engineering as Megha has their base in Hyderabad

[sirius]

If this materializes, it will give a much-needed boost to the manufacturing sector in Hyderabad. Right now Hyderabad and to a large extent telangana economy is largely dependent on just two industries i.e. IT, and Pharma. And it is high time diversification is needed.

[unplugged]

This BYD investment will materialize only if they get required approval from Government of India under Press Note 3 of 2020 requirements.

The same proposal was rejected in 2023 and Megha was the proposed partner even then.

https://indianexpress.com/article/bu...plant-8857422/

Wonder what has changed now, especially considering it will be a direct threat to Tesla in India, whom we are trying to please by offering concessions, and in return avoiding tariff hikes on our exports to US by Trump.

[shankar.balan]

Originally Posted by unplugged

This BYD investment will materialize only if they get required approval from Government of India under Press Note 3 of 2020 requirements.

Wonder what has changed now, especially considering it will be a direct threat to Tesla in India, whom we are trying to please by offering concessions, and in return avoiding tariff hikes on our exports to US by Trump.

Our Govt should actively encourage competition.

If BYD and Tesla can compete on their own merit as products, that will be good for us consumers.

Personally, having used both Tesla and BYD vehicles many times, and indeed having driven a few, I prefer BYD any day. They are actually and factually superior.

Yes there will always be ‘brand preference’ and rightly so. Which is why having both of them here in India will be a good thing.

Tesla - well, it is a great brand and a good looking product and yes, it was a pioneer and all - but yet, unlike BYD, Tesla somehow comes across as ‘entitled’.

If BYD makes their cars here in India, then the prices will be better. And both Tata and Mahindra will struggle. As will Hyundai and Maruti. At least as far as EV’s are concerned.

This is necessary, because everyone will (hopefully) be stimulated by active competition, which is a good thing for us consumers.

All our manufacturers have tended to take us consumers for granted - yes, while there have been some improvements in the recent past, even now our Indian manufacturers aren’t truly able to churn out 100% niggle free products and thus, spare the ‘consumers from being treated as ‘guinea-pigs’ in rheir testing process.

We really need to learn how to get it right first time and every time - the famed cookie cutter execution.

So our Government would do well to allow a good joint venture to happen for BYD. Like they did with MG and JSW. And very probably only one of those giant conglomerates can catalyse this - someone like a Reliance or Adani Group or similar.

[volkman10]

Originally Posted by unplugged

---

Wonder what has changed now, especially considering it will be a direct threat to Tesla in India, whom we are trying to please by offering concessions, and in return avoiding tariff hikes on our exports to US by Trump.

Could be this. Can you ever trust the current American regime?

US tariffs looming, India looks at easing non-trade barriers, relaxing Chinese FDI
On the investment front, there are indications the Indian side is now open to allowing inflows from Beijing as a countermeasure to the widening trade deficit between the two countries.

Link:

[unplugged]

You made all the right points as to why our Government wouldn't want this to happen. Higher competition means lower prices which means less tax revenue. Reducing prices for end users is the last thing our government would want to do. Remember our government wants big businesses to thrive not the consumers per se.

Also as you rightly pointed out it can happen with the right conglomerate as the JV partner who can move the needle against potentially angering another right conglomerate from US.

[Bhodrolok]

Amazing! I am way more interested in BYD opening an actual plant than Tesla coming in with a few imports. BYD will force our big 3 or 4 to buckle up and produce better products or perish!

So I do expect a lot of drama and opposition around this if this is likely to materialize.

[carjack3090]

Originally Posted by Bhodrolok

Amazing! I am way more interested in BYD opening an actual plant than Tesla coming in with a few imports. BYD will force our big 3 or 4 to buckle up and produce better products or perish!

So I do expect a lot of drama and opposition around this if this is likely to materialize.

My Gut feeling is prompting that BYD will never manufacture in India. The obstruction will come from the Chinese Government cause they know India can do what they have done to other Foreign OEMs.

Also people are circle quoting an article originally created by Eenadu on backs of a twitter user whose source was the original 2023 Proposal.

[JunkyardHunter]

If this happens, it could be the much needed wake up call for Tata, and would also completely shake up the market. Imagine what happened with the Windsor, but for more than 1 segment.

However, I don’t think this’ll happen. AFAIK, BYD has already tried to gain approval to build a factory from the government, but was rejected - possibly due to Indo-China relations. Also, India is already making allowances for Tesla, so it’s unlikely that we will allow Tesla’s chief rival to assemble cars in India, especially since Tesla is likely going with the CBU/CKD route.

[Rajesh V]

This is amazing news! Wonder if they'll be able to maintain the quality.

That's a pretty long time though. Might they bring battery manufacturing also?

Originally Posted by JunkyardHunter

However, I don’t think this’ll happen. AFAIK, BYD has already tried to gain approval to build a factory from the government, but was rejected - possibly due to Indo-China relations.

Those relations have now improved with the US going nuclear against the world.

Originally Posted by JunkyardHunter

Also, India is already making allowances for Tesla, so it’s unlikely that we will allow Tesla’s chief rival to assemble cars in India, especially since Tesla is likely going with the CBU/CKD route.

Only because they're forced to. We have no intention of giving Tesla an easy time, so might as well extend the benefits to others.

[Turbolove]

The entire article is just based on speculation, alot of news outlets have done the same. No press release has been put out by BYD and neither has there been any confirmed visit by their CEO to India in the recent past.
BYD hasn't acquired any land parcel near Hyderabad either.

[karikaalan]

Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) is flawed due to which no manufacturer has committed to it yet. Let us look from the perspective of BYD and prospects in India

1. Current BYD products are priced double compared to China due to import tax. Even Thailand I believe has much cheaper prices due to localized assembly/components and better taxation structure
2. Companies joining SPMEPCI have the advantage of getting CKD Kits at 15% tax in place of 100% tax for 8,000cars/year upto 40,000cars . IF they fulfil certain criteria starting with a 7,000Cr factory investment within the next three years
3. The investment bit won't be a problem for a Giant like BYD, the bigger problem comes here - TATA, Mahindra and other local players scared for their livelihood lobby to include this beautiful clause. The Tax cut is only appliable to cars with landing value above 30Lakh INR - which means BYD Atto, Seal/Sealion base editions if imported will not be covered under 15% tax and will in fact be taxed at 100% keeping the prices similar to where they are now!. A single manufacturer selling 8,000EV's per year priced over 30Lakhs looks impossible with current infrastructure.
4. For the EV Future to really kick off in India and with reasonable priced EV's giving ICE engines a run for their money somewhere down the line Indian Govt. should open up for a JV of a mega battery plant with scope of technology transfer and complete localization of battery production in the long run. This will totally change the game wrt pricing and the sheer volume of Indians looking for cars in the 5-15L range means future will be very bright indeed for the EV manufacturers.

[carjack3090]

Originally Posted by karikaalan

Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) is flawed due to which no manufacturer has committed to it yet. Let us look from the perspective of BYD and prospects in India

1. Current BYD products are priced double compared t manufacturers.

Think from TAMO and Mahindra's POV, the biggest reason they invested in their Born Electric Architecture was to align with Governments objectives and when they are not even done with reaping benefits of being in touch with Governments POV, they will be burdened with competition from accomplished players like BYD? . It would be unfair for both Tata and Mahindra

For starters Mahindra's BEV has turned Atto 3 redundant. That's what born Architectures can do but they need time to invest and settle in