By Sarita Chaganti Singh and Aditi Shah
NEW DELHI (Reuters) – China’s BYD Co has submitted a $1 billion investment proposal to build electric cars and batteries in India in partnership with a local company, three people with direct knowledge told Reuters. plan.
BYD and private Hyderabad-based Megha Engineering and Infrastructures have submitted a proposal to Indian regulators to form an electric vehicle joint venture, the people said, asking not to be named because the app is private.
The longer-term plan is to build a full range of BYD-branded electric vehicles in India, from sedans to luxury models, one of the three people said.
BYD, the world’s largest producer of electric vehicles and plug-in hybrid vehicles, did not immediately respond to a request for comment. The company previously said it planned to expand into India, now the world’s third largest automotive market.
India’s trade and heavy industry ministries did not immediately respond to a request for comment.
BYD’s push into India is part of its rapid global expansion to challenge Tesla, which still leads in electric vehicle sales. If the investment in India is approved, it would give BYD a presence in all major global auto markets except the United States.
Tesla recently reignited talks with the Indian government after suspending its market entry plans last year when it failed to secure a reduction in taxes on imported vehicles in talks with officials.
BYD has already invested $200 million in India where it sells the Atto 3 electric SUV and e6 EV to corporate fleets, and plans to launch its Seal luxury electric sedan this year.
The total production capacity proposed by BYD was not immediately clear.
The maker of Blade batteries as well as finished EVs plans to ramp up production to 100,000 EVs a year in India over a few years, but would likely start by shipping vehicles in parts to be assembled in the country as it strives to create a supply chain. , said one of the sources.
The investment proposal also includes a plan by BYD and Megha to install charging stations in India and build research and development and training centers, the sources said.
(Reporting by Sarita Chaganti Singh and Aditi Shah in New Delhi; Additional reporting by Zoey Zhang in Shanghai and Shivangi Acharya in New Delhi; Editing by Kevin Krolicki and Jacqueline Wong)