MEIL passenger car foray enters final lap, EV joint venture soon

Hyderabad-based Megha Engineering & Infrastructures is expected to announce an electric vehicle joint venture in the coming months as it prepares to enter the passenger car segment

The long-harboured ambition of Hyderabad-based Megha Engineering & Infrastructures Limited (MEIL) to foray into the passenger car segment is likely to be in its final lap, with a formal announcement on an electric vehicle joint venture expected within the next couple of months, said multiple sources aware of the development. 

The firm may finalise a joint venture announcement through which a partner company will share technology, and MEIL will look into the execution side. On Wednesday, addressing the media, P V Krishna Reddy, managing director of MEIL, also confirmed its plans to come out with passenger cars. 

This comes almost three years after its plans to come up with a $1 billion electric vehicle (EV) project with China's BYD. Both BYD and MEIL had approached the government with a proposal to build EV cars way back in April 2023. However, this plan reportedly got shelved after the government flagged security concerns regarding the investor, a Chinese major. BYD is the world's largest manufacturer of electric and plug-in hybrid vehicles. 

 

However, it is not clear whether the current partnership will be a revival of the $1 billion plan with BYD. The company did not respond to Business Standard questions. Interestingly, on Wednesday, MEIL and Abu Dhabi-based Analog announced a strategic partnership to deploy physical intelligence for the first time in India. 

"We are going to start manufacturing cells, batteries, and passenger cars in due course. We can utilise this (physical intelligence) in those sectors as well," Reddy said. After improved diplomatic relations between India and China last year, which lifted travel restrictions and opened the door for business expansion, there were reports that BYD was preparing to assess its existing car factory, restart training programmes, and explore market opportunities for its Atto 2 compact electric SUV, which may turn out to be its most affordable model in India. 

In 2025, BYD sold around 4.6 million New Energy Vehicles (NEVs) worldwide, up 8 per cent from the previous year. 

According to industry sources, a tie-up with BYD cannot be ruled out, as MEIL and BYD had a co-operation agreement in the early 2010s to start building buses under a company, Olectra Greentech. This agreement was extended till December 31, 2030. 

The collaboration was the first to bring fully electric buses to the Indian market and helped establish local design, research and development, and manufacturing capabilities. Olectra continues to supply buses across the country using BYD's technology. 

However, BYD had entered the Indian market way back in 2007 by manufacturing batteries and components for mobile phone makers. Olectra has already announced an investment of around ₹400 crore on buses and trucks over the next two years. It may also launch a portfolio of electric trucks in the 28-tonne to 55-tonne GVW category.