Chinese electric vehicle and power battery giant BYD plans to invest $1 billion in a new Indian factory with a local partner, Hyderabad-based Megha Engineering and Infrastructures. The automaker reportedly submitted a proposal to the government of India, three people familiar with the matter told Reuters.
The news occurred after reports emerged last week that its closest rival Tesla would erect a production plant in the country for an electric car offering below $25,000.
In addition, the Chinese company has also started producing its sodium-ion battery in its home market through a joint venture.
BYD’s presence in India
BYD currently sells the famous Atto 3 SUV and the e6 crossover to corporate fleets in India. In 2007, it started developing batteries and parts for mobile phone manufacturers in the country. A few years later, it formed the joint venture Olectra Greentec with Megha Engineering to produce electric buses in 2013.
As mentioned, the company now plans to build a new EV and battery factory in India. Unfortunately, there are currently no confirmed details about the possible production capacity of the new factory. However, sources claim that BYD aims to ramp up annual EV production in the country to 100,000 units by the following years.
Before the production ramp-up, BYD reportedly plans to first import the necessary parts and assemble them in the country as it still builds a local supply chain.
Apart from that, sources further disclosed that the investment proposal also indicated plans to develop charging infrastructures and R&D and training centers in the country.
The Indian government does not highly support foreign-made vehicles, implementing import duties that can reach as high as 100%. These substantial taxes are part of the government’s strategy to urge foreign investors to partner with local companies, which BYD adhered to.
Meanwhile, the Musk-led automaker apparently avoided the guidance, demonstrating the same luck it had for the Giga Shanghai plant in China.
All these significant developments are unsurprising, given that India is the world’s biggest country by population and the fourth-largest new auto market. The country has also found large lithium deposits that might advance its position as a major player in the global EV industry.
BYD now produces sodium-ion batteries in China
BYD’s battery subsidiary FinDreams and Huaihai Holding Group has partnered to produce the automaker’s sodium-ion batteries in the Xuzhou Economic and Technological Development Zone in the province of Jiangsu.
The partners stated in a joint press release that the JV would be the biggest sodium-ion battery supplier for mini and micro EVs. The JV will leverage Huaihai’s resources, including marketing and application. Meanwhile, FinDreams will offer products and services.
For context, the production of sodium batteries is cost-effective for companies as it uses widely available and inexpensive materials, unlike Li-ion batteries. However, it does not offer the same level of energy density as the latter battery type. Therefore, sodium-ion battery application is largely for short-range urban transportation.
Nonetheless, Huaihai believes in sodium batteries’ potential to enjoy significant economic and social value growth in the Chinese market. In fact, it has already invested in a sodium-ion battery startup Natrium.
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The wide adoption of electric vehicles has started to rapidly increase worldwide, with major players racing to discover the most advanced and efficient technology. Now, BYD is getting increasingly aggressive with its expansion as it aims to beat the industry leader, Tesla.
