BYD to build a plant in India: Can it reshape the car and EV market?

BYD's India entry will spark a new EV battle. Can it outpace local giants and repeat its China triumph over Tesla, or will the competition reshape India's electric mobility landscape?

Chinese electric vehicle (EV) giant BYD is set to establish its first manufacturing plant in India, marking a strategic shift in its global expansion efforts. According to a Business Standard report, the company has identified Rangareddy district in Telangana, about 60 kilometres from Hyderabad, as the site for its proposed EV and battery production unit. The move comes amid rising tariffs in Western markets, forcing Chinese automakers to explore alternative growth opportunities.

 

Why is BYD entering India now?

 

BYD’s India expansion is driven by escalating trade barriers in key export destinations. The European Union (EU) has imposed tariffs as high as 35.3 per cent on Chinese EVs since September last year, with BYD facing a 17 per cent levy on top of the standard 10 per cent import duty, effectively bringing the tariff to 27 per cent. The United States has also announced steep tariffs on Chinese electric cars, raising duties to 100 per cent from 25 per cent, effectively limiting BYD’s ability to compete in these markets. These protectionist measures have prompted BYD to seek new opportunities in emerging economies with growing EV demand.  Watch: China's BYD to set up 1st EV factory in India: Know key details here!

 

 

Meanwhile, India, with its relatively lower tariffs and government-backed EV incentives, presents an attractive alternative. Business Standard reported that BYD has secured informal approval from the Indian government to proceed with the project, provided it partners with a local entity. Hyderabad-based Megha Engineering and Infrastructures Ltd (MEIL) is expected to be the majority stakeholder in the venture, ensuring compliance with India’s regulatory requirements.

 

What is BYD?

 

Founded in 1995 by Wang Chuanfu, BYD (Build Your Dreams) initially started as a battery manufacturer before entering the automotive industry in 2003. Over the past two decades, it has emerged as the world’s leading EV maker, surpassing Tesla in total sales. BYD’s technological advancements include the Blade Battery, a lithium iron phosphate (LFP) battery with improved safety and energy efficiency. The company also maintains a vertically integrated supply chain, reducing dependence on external suppliers and lowering production costs.

 

Can BYD outpace Indian rivals on innovation and pricing?

 

BYD’s Blade Battery technology sets a new benchmark for EV safety and efficiency. Designed to withstand extreme conditions, it has successfully passed nail penetration tests without catching fire, highlighting its superior thermal stability over conventional lithium-ion batteries. Its structure improves space utilisation by over 50 per cent, enhancing energy efficiency.

 

During nail penetration tests, the Blade Battery remained stable, producing neither smoke nor fire, with its surface temperature rising only to 30–60°C. In contrast, a ternary lithium battery surpassed 500°C and ignited violently, while a conventional lithium iron phosphate block battery, though not emitting flames or smoke, still reached a hazardous 200–400°C. These results indicate that EVs using the Blade Battery have a significantly lower risk of catching fire, even in cases of severe damage.

 

How fast do BYD cars charge compared to rivals?

 

While prioritising safety, it has also maintained a competitive energy density, making it ideal for BYD’s flagship EVs. The company’s fast-charging innovations further bolster its position — its latest Super e-Platform enables 470 kilometres (292 miles) of range in just five minutes, outperforming Tesla’s 15-minute charge for a similar range. Additionally, with peak charging speeds of up to 1,000 kilowatts, BYD is addressing consumer concerns about EV charging times. Looking ahead, BYD plans to introduce all-solid-state batteries by 2027.

 

Meanwhile, lithium-ion batteries are the most widely used type in Indian EVs due to their high energy density, long cycle life, and relatively low self-discharge rates. As of 2025, the fastest charging time for an electric passenger vehicle in India is achieved by the Tata Curvv EV, which can charge from 10 per cent to 80 per cent in 40 minutes using a DC fast charger.

 

How does BYD compare to global EV rivals in sales?

 

BYD has solidified its dominance in the global EV market. In 2024, it reported annual revenues exceeding $107 billion, delivering 4.27 million vehicles worldwide. This was nearly double Tesla’s 1.79 million units. While BYD’s primary market remains China, where it commanded a 32 per cent market share in new energy vehicles (NEVs), its international expansion is accelerating.

 

Exports accounted for approximately 10 per cent of BYD’s total shipments in 2024. The company has established production facilities in Thailand, Brazil, and Hungary, and now aims to strengthen its presence in India. Its aggressive pricing strategy — offering entry-level models at just over $10,000 in China — has been a key factor in its global success.

 

How big is India’s EV market and who’s leading it?

 

India’s EV market is still in its early stages, accounting for only 2.5 per cent of total passenger vehicle sales in 2024. However, the sector is witnessing rapid growth, with India’s electric vehicle market projected to expand at a compounded annual growth rate (CAGR) of 43 per cent and sales estimated to reach 932,000 units by 2030.

 

Electric SUVs are expected to account for 61 per cent of this demand. In contrast, EV sales in 2024 stood at a modest 107,000 units, while total car sales, including sedans and SUVs, amounted to approximately 4.3 million. The Indian government has set an ambitious target for EVs to constitute 30 per cent of passenger vehicle sales by FY30, supported by policies such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and reduced import duties on EV components.

 

Production trends indicate a surge in local EV manufacturing. According to an S&P Global Mobility report released earlier this month, India produced 125,500 EV passenger vehicles in 2024, reflecting a 22.5 per cent year-on-year increase. The firm projects a 140.2 per cent rise in 2025, with an estimated 301,400 units, constituting about 6 per cent of the country’s total projected passenger vehicle production of 5.16 million units.

 

Which automakers are leading India’s EV race?

 

The Indian EV market is currently led by Tata Motors, Mahindra Electric, MG Motor India, and Hyundai. Tesla has also announced its India entry, setting the stage for intense competition. BYD’s rivalry with Tesla has been a defining factor in the global EV landscape, with BYD surpassing Tesla in sales for the first time in late 2023.

 

Tata Motors currently holds a market share of approximately 38 per cent in the Indian EV segment. In January 2025, the company sold 5,037 EVs, marking a decline from previous months due to rising competition in the sector. MG Motor India has rapidly expanded its market presence, capturing about 29 per cent of the segment. The company sold 4,455 EVs in January 2025, benefiting from strong sales growth and the launch of new models. Meanwhile, Mahindra Electric holds a market share of around 16 per cent as of January 2025. The company is actively working on expanding its EV portfolio and strengthening its position in the market.

 

Can Tesla counter BYD in India after losing ground in China?

 

Tesla has also announced plans to open a store in India. The Tesla–BYD rivalry has been a growing development in the global EV market.

 

Tesla’s market share in China has dropped from over 16 per cent in 2022 to just 4.3 per cent by early 2025, while BYD has strengthened its position. Whether BYD can repeat this success in India remains to be seen, as Tesla’s premium branding and anticipated launch of an affordable Model 2 could challenge BYD’s expansion.

 

BYD surpassed Tesla in quarterly global sales for the first time in late 2023. In 2024, Tesla’s total deliveries dropped 1.1 per cent to 1.79 million vehicles, while BYD’s deliveries surged 29 per cent to 4.27 million units, including hybrids. The competition intensified in China, where BYD captured 32 per cent of the NEV market, compared to Tesla’s 6.1 per cent. Tesla’s market share in China plummeted from over 16 per cent in 2022 to just 4.3 per cent by early 2025.

 

What does BYD’s India entry mean for domestic EV players?

 

BYD’s India entry is expected to reshape the competitive landscape, affecting domestic manufacturers like Tata Motors, Maruti Suzuki, and Mahindra, by increasing price competition, accelerating technological advancements, and driving demand for EV components. Industry experts are also optimistic that BYD’s investment will boost consumer adoption of EVs, but caution that its success in India will depend on factors like regulatory approvals, charging infrastructure, affordability, and competition from Tesla and local manufacturers.