The company dominates China’s new energy vehicle (NEV) market with a 32 per cent share and is aggressively expanding internationally, setting up plants in Thailand, Brazil, Hungary, and now India.BYD, the world’s largest electric vehicle (EV) maker, is set to build its first manufacturing plant in India, marking a pivotal move in its global expansion. The facility will be located in Rangareddy district, Telangana, approximately 60 kilometres from Hyderabad, as per a Business Standard report. This decision aligns with BYD’s strategy to navigate rising tariffs in Western markets, particularly in the United States and European Union (EU), where the company faces steep levies on Chinese EV imports. To comply with Indian regulations, BYD is expected to partner with Hyderabad-based Megha Engineering and Infrastructures Ltd (MEIL), with MEIL holding a majority stake in the venture.
Why Is BYD Expanding into India Now?
BYD’s India entry comes as trade tensions with the U.S. and EU restrict Chinese EV exports. The EU imposed up to 35.3 per cent tariffs on Chinese EVs, while BYD itself faces a 27 per cent effective tariff in Europe. Meanwhile, the U.S. has quadrupled duties on Chinese EVs to 100 per cent, making exports unviable. India’s favourable EV policies and rising demand make it an attractive alternative for growth.
Founded in 1995 as a battery manufacturer, BYD (Build Your Dreams) entered the automotive sector in 2003. It surpassed Tesla in global sales in 2024, delivering 4.27 million vehicles compared to Tesla’s 1.79 million. The company dominates China’s new energy vehicle (NEV) market with a 32 per cent share and is aggressively expanding internationally, setting up plants in Thailand, Brazil, Hungary, and now India.
Blade Battery Technology: A Game-Changer for EVs?
BYD’s proprietary Blade Battery uses lithium iron phosphate (LFP) technology, offering:
- Enhanced safety: It remains stable under extreme conditions and doesn’t catch fire, unlike traditional lithium-ion batteries.
- Higher energy efficiency: Optimising space utilisation by over 50 per cent.
- Rapid charging: The company’s Super e-Platform enables a 470-kilometre range in just five minutes, outperforming Tesla’s 15-minute charge for a similar range.
India’s EV sector is expanding rapidly, with sales projected to reach 932,000 units by 2030 at a CAGR of 43 per cent. Currently, Tata Motors dominates with a 38 per cent market share, followed by MG Motor India (29 per cent) and Mahindra Electric (16 per cent). With Tesla also eyeing India, the competition is set to intensify.
What This Means for India’s EV Industry
BYD’s India entry is expected to:
- Increase price competition, pushing domestic players to innovate.
- Accelerate EV adoption, benefiting from government incentives.
- Drive infrastructure growth, boosting charging networks and battery production.
Can Tesla Challenge BYD in India?
Tesla’s market share in China has plummeted from 16 per cent in 2022 to 4.3 per cent in 2025, as BYD strengthens its grip. With Tesla planning an India launch, the battle for dominance in the world’s next big EV market is just beginning.
As BYD builds its first Indian plant, its success will depend on regulatory approvals, pricing strategy, and infrastructure readiness. Can it replicate its China success in India, or will local giants and Tesla pose formidable challenges? The coming years will decide.
