Chinese electric vehicle (EV) manufacturer BYD has officially refuted recent media reports suggesting that the company is planning to establish a car manufacturing facility in Hyderabad, India. This clarification comes in light of various news articles that indicated BYD was in discussions with the Telangana government regarding potential sites for a new production unit.
Recent reports from multiple sources, including Business Standard and ETV Bharat, claimed that BYD was considering an investment of approximately ₹85,000 crore ($10 billion) to set up its first manufacturing plant in India near Hyderabad. The proposed facility was said to have the capacity to produce 600,000 electric vehicles annually by 2032, along with plans for a 20 GWh battery manufacturing unit.
The Telangana government had reportedly proposed several locations for the factory, and discussions between BYD representatives and state officials were ongoing. The reports suggested that this move would significantly bolster BYD's presence in the Indian EV market and contribute to local job creation and ancillary industries.
In response to these claims, BYD issued a statement clarifying that while they are exploring opportunities in India, no definitive plans have been made regarding a manufacturing facility in Hyderabad or elsewhere. The company emphasized its commitment to evaluating market conditions and regulatory environments before making any significant investments.
BYD's refutation may lead to fluctuations in investor sentiment regarding the Indian EV market, particularly as many companies are vying for a foothold amid growing demand for electric vehicles. The clarification highlights the complexities surrounding foreign investments in India, especially from Chinese companies, which have faced scrutiny due to geopolitical tensions. Despite the current refutation, industry analysts believe that BYD will eventually seek to establish a manufacturing presence in India, given the country's burgeoning EV market and recent policy shifts aimed at attracting foreign investment. Currently, BYD operates an assembly base in Tamil Nadu for electric buses and has a technical partnership with Olectra Greentech, which manufactures electric buses using BYD technology.
While BYD has denied reports of setting up a factory in Hyderabad, the interest in India's EV market remains strong. As the landscape evolves with changing regulations and increasing demand for electric vehicles, it will be crucial for companies like BYD to navigate these challenges effectively. The future of EV manufacturing in India continues to hold promise, but clarity on investments from major players will be key to shaping this dynamic sector.