BYD denies Hyderabad EV plant plans, calls investment reports 'untrue'

Chinese EV giant BYD dismissed the reports of investment in manufacturing plant in India as 'untrue' in an official statement posted on its WeChat account

Chinese electric vehicle (EV) maker BYD has refuted claims suggesting it intends to establish a manufacturing plant in India, according to a report by TechinAsia.com. The company dismissed the reports as “untrue” in an official statement posted on its WeChat account.

 

Last week, various media outlets reported that BYD plans to invest approximately $10 billion to develop a production facility in Hyderabad. However, the company clarified that no such agreement or investment decision has been finalised.

 

Although BYD has been actively expanding its footprint in international markets such as Southeast Asia, South America, and Europe, it has not announced any large-scale manufacturing ventures in India, the report noted. The company currently operates in the country through its subsidiary, BYD India, which primarily focuses on electric buses and passenger vehicles.

   

Reports of  BYD's potential 'Hyderabad facility'

 

Last week, multiple reports suggested that BYD held extensive discussions with the Telangana government, which had reportedly pledged full support for the project, including land allocation.

 

According to reports, the state government had identified three potential locations near Hyderabad for the proposed facility. BYD representatives were said to be evaluating these sites before making a final decision.

 

BYD’s presence in India and investment hurdles

 

Despite having operated in India for several years, BYD has yet to set up a domestic manufacturing facility. Currently, it imports electric vehicles from China, resulting in high import duties that make its EVs more expensive and limit its market share.

 

A local production unit would significantly cut costs, potentially boosting sales and making BYD more competitive in India’s growing EV sector.

 

For the past two years, the company has been exploring options to build a manufacturing plant in India. However, regulatory restrictions on Chinese investments have posed challenges.

 

In 2023, the Indian government rejected a $1 billion investment proposal jointly submitted by BYD and its local partner, Megha Engineering and Infrastructures Ltd (MEIL), to set up an EV manufacturing plant. The planned facility in Telangana, with an estimated investment of ₹8,200 crore, had been under review by the commerce and industry ministry, as well as the ministries of heavy industries, external affairs, and home affairs, before the proposal was ultimately declined.