India’s electric vehicle (EV) journey is heading toward a major turning point as Chinese automotive heavyweight BYD prepares to establish a massive manufacturing facility in Hyderabad, Telangana. With an expected investment of Rs. 85,000 crore (approximately $10 billion), this move could reshape India’s EV industry, making Telangana a powerhouse for green mobility.
source: Fortune India
Hyderabad Gears Up for an EV Megaproject
BYD is currently scouting three locations in Hyderabad, with full backing from the Telangana state government, which has promised land and policy support. Once finalized, the facility is expected to span over 500 acres and roll out 600,000 vehicles annually by 2032. This would make the plant one of the largest of its kind in India and a major production center in BYD’s global supply chain.
From Importer to Manufacturer
While BYD has been present in India for several years, it has so far relied on importing EVs from China. This model came with high import duties, pushing up prices and limiting sales. A local factory changes the game entirely—cutting costs, improving affordability, and enabling BYD to directly compete in India’s fast-growing EV market.
Policy changes in recent years have eased restrictions on Chinese investments, making it easier for BYD to move forward with its plans. The new factory aligns perfectly with India’s broader goals to reduce carbon emissions and localize EV production under its “Make in India” initiative.
A Battery Gigafactory to Power India’s EV Future
The project isn’t limited to cars alone. BYD is also planning to set up a 20-gigawatt gigafactory to manufacture advanced lithium-ion batteries, including its in-house Blade Battery technology. This facility will be critical for creating a sustainable EV supply chain in India and reducing dependence on foreign battery imports.
Tesla vs. BYD: India’s EV Arena Heats Up
While BYD takes concrete steps, Tesla continues to evaluate its entry strategy. Despite strong interest, Tesla has yet to commit to a manufacturing facility in India. Talks of partnering with local or Japanese automakers are ongoing, but without a production base, Tesla may struggle to offer competitive pricing in the Indian market.
Globally, BYD has taken the lead in revenue, clocking in at $107 billion in 2024, overtaking Tesla’s $97.7 billion. BYD’s broader lineup—including electric and hybrid models—has helped it scale faster in emerging markets. With local manufacturing on the horizon, BYD could gain an upper hand in India too.
Telangana’s EV Ambitions Take Flight
Hyderabad’s transformation into an EV hub seems imminent. Telangana’s progressive EV policies—such as waiving registration fees and road tax for EVs—have already attracted industry players. The arrival of BYD could trigger a ripple effect, drawing in battery suppliers, parts manufacturers, and charging infrastructure providers.
Industry experts predict that BYD could capture as much as 15% of India’s EV market by 2028. Beyond just cars, the investment is expected to generate thousands of direct and indirect jobs, energizing the local economy.
What This Means for India’s EV Ecosystem
BYD’s bold move into local production reflects India’s rising importance in the global EV narrative. It could accelerate EV adoption across the country by making vehicles more affordable and accessible, while also boosting innovation and competition in the sector.
As India continues to push for a greener transport future, backed by favorable policies and strong demand, the country is well-positioned to become a global leader in EV manufacturing. BYD’s entry marks a pivotal moment—and it could be the spark that propels India into the electric age.
