BYD Wants To Beat Tesla In India: Southern State To Host Rs. 85,000 Crore Electric Car Factory
The electric vehicle (EV) sector in India is booming. It is so lucrative that even the American giant Tesla is getting ready to grab their pie. Elon Musk's EV company will face tough competition from Indian and foreign rivals. In global markets, BYD is probably the strongest rival to Tesla. The Chinese company could build a manufacturing facility in Hyderabad, Telangana. It is reported to be considering a massive ₹85,000 crore ($10 billion) investment here. The factory will include a state-of-the-art EV and battery manufacturing hub.
Upon completion, the new facility will produce BYD electric vehicles. This will bring down the prices of these models. The manufacturer will turn India into one of its major manufacturing hubs globally. There will be a strong focus on exports.
New BYD Factory To Be Set Up In Hyderabad?
The electric car company has recently been scouting for land in Telangana for its factory, and it looks like Hyderabad is where it could be set up (Via thephilox.com). The facility will span 500 acres and will have an annual capacity of 600,000 vehicles by 2032. The battery production unit will have a capacity of 20 GWh.
With the new facility coming up, Hyderabad will turn into a major electric vehicle manufacturing hub. Local sources report that the Telangana government has proposed multiple locations around Hyderabad. The government had previously rejected a proposal from the manufacturer, for a plant in Telangana.
To increase EV adoption in the state, the government has announced a new EV policy and huge incentives. It completely exempts road tax and registration fees for all categories of EVs. The scheme is valid till December 31, 2026.
Tesla is yet to establish a manufacturing footprint in India. It is known to be considering a contract manufacturing arrangement here. It is evaluating possible contracts with an Indian and a Japanese carmaker, who are operating below their peak capacities. If the deal goes through, the winning manufacturer will build Tesla cars in India.
With local manufacturing, BYD cars will be priced competitively. However, even with contract manufacturing in place, Tesla cars could be priced at a slight premium. The fight between Tesla and BYD is set to intensify on all grounds.
Tesla vs BYD: Stronger Fight Incoming
Globally, BYD posted $107 billion in revenue for 2024, and Tesla sat lower at $97.7 billion. However, BYD's portfolio consists of both electric and hybrid vehicles. Tesla, on the other hand, has an EV-only portfolio. It sold 1.79 million vehicles.
A key advantage of BYD is its Blade battery technology. It offers improved thermal management, high efficiency ( range), enhanced resistance to fire, and longer lifespan and lower ownership costs. The BYD battery thus has an edge over rivals using conventional lithium-ion solutions.
Tesla models use batteries with Nickel-Cobalt-Aluminum (NCA), Nickel-Cobalt-Manganese (NCM), and Lithium-Iron-Phosphate (LFP) chemistries. Blade cells, on the other hand, use Lithium Iron Phosphate (LFP) chemistry.
BYD's Huge Investment In India: What It Could Mean To The EV Space?
Industry analysts opine that setting up the factory will bring significant changes to the EV market here. The factory will have a large manufacturing capacity. The Philox predicts that the Chinese carmaker will be able to capture up to 15% market share by 2028, with the proposed localisation in place.
The present portfolio of BYD India consists of the Sealion 7, eMax 7, Seal and the Atto 3. The carmaker is expected to launch more affordable products in the upcoming years.