The company, whose plans to set up an EV plant were blocked by the government two years ago, will focus on building its brand in 2025, even as efforts are on to enter into a manufacturing arrangement in the country.
06 Feb 2025 | 13507 Views | By Darshan Nakhwa and Prerna Lidhoo
BYD Auto, the world’s largest electric vehicle manufacturer from China, continues to explore the possibility of setting up a manufacturing facility in India, and is also evaluating options to partner with domestic companies for the same, said Rajeev Chauhan, who heads the Indian electric PV business of the Chinese automaker.
This is an Autocar Pro Plus article. Subscribe to continue reading.
BYD Auto, the world’s largest electric vehicle manufacturer from China, continues to explore the possibility of setting up a manufacturing facility in India, and is also evaluating options to partner with domestic companies for the same, said Rajeev Chauhan, who heads the Indian electric PV business of the Chinese automaker.
The Chinese company, the world’s largest maker of EVs, was frustrated in its last attempt to set up a manufacturing base in India after its investment proposal, reportedly worth $1 billion, failed to assuage security concerns of the Indian government. The lack of local manufacturing has severely constrained the company’s presence in the Indian market, where it enjoys only a marginal presence through imported models.
However, Chauhan indicated the company was still interested in setting up manufacturing in India, including a tie-up with an Indian OEM. “We are keen and we are constantly evaluating. A lot of factors have to merge in, to make that decision click. At this point of time, we are evaluating the options. As soon as we spot that opportunity, we will definitely take it,” he told Autocar Professional in an interaction.
The comments came in the backdrop of speculations that the Chinese new energy vehicle specialist has been in talks with Indian conglomerates Reliance Group and Adani Group to manufacture locally. Chauhan did not share any timeline on when the company expects to be able to start production in the country. Instead, he said that it will use 2025 to expand the company’s presence in tier-2 markets and spread awareness about BYD products.
In 2023, the automaker’s plan to set up an EV and battery manufacturing facility in India at an investment of $1 billion alongwith its Hyderabad-based partner Megha Engineering and Infrastructures was not approved by the government.
The spotlight on Chinese companies operating in India increased after border clashes between the two countries in 2020. The Indian government has since tightened foreign direct investment rules, with any investment proposal from countries sharing land border with India, requiring its prior approval.
In 2024, a glimmer of hope emerged for Chinese automakers–with ambition to expand presence in India–after the joint venture between JSW Group and China's largest car maker Shanghai Automotive Industry Corporation's British Brand MG Motor India received government clearance. The relations between India and China have improved over last year. This has come in the backdrop of growing economic uncertainties in both countries, international trade uncertainties, and India’s potential as a consumer. This development is expected to help BYD with manufacturing ambition in India.
Rising Ambition
In 2024, BYD India sold a total of 2,831 cars in India, registering growth of 40% over the 2,012 units sold in 2023, according to Vahan data. In comparison, the electric passenger vehicle industry sold a total of 99,290 units, registering a growth of 20% on the year. Tata Motors, JSW MG Motor and Mahindra & Mahindra contributed over 90% of industry sales. Chauhan aims to reach 10,000 units annually within the next two years.
Currently, BYD operates a small assembly base in Tamil Nadu but relies heavily on completely built imports due to homologation challenges. In 2023, the company faced accusation of not meeting the conditions required for lower tax rates on imported car parts, leading the Department of Revenue Intelligence to seek $9 million in penalties.
According to government regulations, a company is permitted to import a maximum of 2,500 units of a model annually. The cap is lifted if the model obtains a homologation certificate from the government-run Automotive Research Association of India, which certifies that the vehicle meets safety and regulatory standards. BYD India has received a homologation certificate for Atto 3 model in India, and it is in the process of getting a homologation certificate for eMax7. However, the company is yet to apply for this certificate for Seal.
Meanwhile, the competition in the electric car space in India is expected to reach a crescendo, with both the government and automakers doubling down on their strategies to drive adoption. For 2025, while most original equipment manufacturers have chosen the path of product offensive and heavy marketing spends to entice potential customers, BYD India plans to sharpen focus on tier-2 markets.
According to Chauhan, BYD India has already covered tier-1 markets through its dealerships, and in 2025 it aims to target tier-2 markets to drive growth.
The company plans to expand its dealership network in the country from 27 touchpoints to 40 by the end of January. “Our strategy is to familiarise people with BYD products, and technology in tier-2 markets. To build a base for the next set of customers,” he said.
On demand from the tier-1 markets, Chauhan said the company has so far seen strong demand from Hyderabad, Bangaluru, Delhi, and Mumbai. Most of the 2,831 cars sold by the company in 2024 are expected to have come from tier-1 markets.
“These are bigger markets for all other manufacturers as well. But if you do a relative comparison, then BYD is doing a little better in terms of market share. Electric car adoption in Hyderabad and in Bangaluru is relatively higher for us,” he said.
According to Chauhan, the government is focused on development of charging infrastructure, and has announced right policies for the same. However, India is a big country and the development of infrastructure might take time. Meanwhile, BYD plans to allay customers' range anxiety by offering a driving range of approximately 500 km on single charge for its EVs, which, according to Chauhan, has worked in the company’s favour.
Responding to a query on whether anti-China sentiment has had any impact on its business in India, Chauhan said the company has not faced any negative sentiments. “The customers in India are pragmatic. They know what is good and bad when it comes to a product,” he said.
According to Chauhan, BYD considers India an extremely important market in its scheme of things, but hasn’t set any target for the world’s third largest automobile market. The automaker believes that there is a favourable environment for EVs in the country, and that will help drive growth in future. “The outlook looks bright, because a lot of players are coming in. The EV market in India will certainly grow at a very fast pace, driven by favourable conditions. There is tailwind on electric cars…If we are able to go into, let's say, double digits, that could be a good number,” he said.
BYD entered India three years ago with–Atto 3, a mid-size sport utility vehicle, and Seal, a luxury sedan. Now, it sees opportunities in premium multi-purpose vehicle and performance SUV segments. And to fill the gap in the market, the company introduced eMAX 7 in 2024, and launched Sealion 7 at the Bharat Mobility Global Expo 2025. The company will reveal the price of Sealion 7 on February 17, and will commence its deliveries from March 7.
According to Chauhan, BYD India remains focused on premium EVs, and plans to take a calculated approach to the mass market segment. The company’s current product portfolio is priced between Rs 25-53 lakh ex-showroom. “In the long-term, we want to introduce as many models as possible. But in the short term, we want to spot new segments and introduce more models in the premium segment,” he said.
In India, BYD models compete with those like XEV 9e and BE 6 from Mahindra, Maruti Suzuki India’s eVITARA, Hyundai Motor’s Creta Electric and IONIQ 5, and Tata Motors upcoming Harrier EV and AvinyaX. On introducing a mass market EV to go against domestic players, Chauhan said, “It's a very lucrative and competitive market for sure, and there are very high returns as well. So definitely on the lookout for that. But it's an assessment phase. We are concentrating on our space