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BYD Considers Local Manufacturing in India to Meet EV Demand

  //automotive-transportation.news-articles.net/co .. al-manufacturing-in-india-to-meet-ev-demand.html
  Published in Automotive and Transportation on Wednesday, January 28th 2026 at 0:43 GMT by Seeking Alpha
      Locales: CHINA, INDIA

New Delhi, January 28th, 2026 - Chinese electric vehicle (EV) giant BYD (BYDDY) is actively exploring a significant expansion of its operations in India, driven by a rapidly growing domestic EV market and a substantial backlog of unfulfilled vehicle orders. Sources close to the company indicate that BYD is weighing both increased imports and, crucially, establishing local manufacturing facilities to address the rising demand.

This potential foray into local production represents a major step for BYD, signalling a long-term commitment to the Indian automotive landscape. Currently, BYD primarily imports vehicles into India, selling models like the Atto 3, e6, and recently, the Seal. However, the sheer volume of orders - currently numbering in the hundreds - is straining the company's ability to efficiently serve the market. Waiting times for certain models have reportedly stretched beyond six months, prompting the need for a more sustainable and scalable solution.

The Indian EV market has experienced exponential growth in recent years, fueled by a combination of factors. Government initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme have provided financial incentives to both manufacturers and consumers, making EVs more accessible. Increasing environmental awareness and rising fuel prices have also contributed to a shift in consumer preferences towards cleaner transportation options. While still a relatively small percentage of overall vehicle sales, EV adoption rates have consistently increased year-over-year, making India one of the fastest-growing EV markets globally.

However, the path to widespread EV adoption in India isn't without its hurdles. A key challenge remains the underdeveloped charging infrastructure. While the number of public charging stations is growing, it remains inadequate to support a large-scale transition to electric mobility, particularly in Tier 2 and Tier 3 cities. Range anxiety - the fear of running out of battery charge - continues to be a significant deterrent for potential EV buyers.

Another significant obstacle is the high import duty levied on completely built-up (CBU) vehicles. These duties significantly increase the cost of imported EVs, making them less competitive compared to locally manufactured internal combustion engine (ICE) vehicles. Establishing a local manufacturing presence would allow BYD to circumvent these import duties and offer more affordable EVs to Indian consumers. Sources suggest BYD has been actively engaging with multiple state governments, exploring potential locations for a manufacturing plant and discussing investment incentives.

BYD's potential investment would not only boost domestic EV production but also create employment opportunities and stimulate economic growth. The company is renowned for its vertically integrated supply chain, encompassing battery production, electric motor manufacturing, and vehicle assembly. This integration provides BYD with a competitive advantage in terms of cost control and supply chain resilience. Bringing this expertise to India could also foster the development of a broader EV ecosystem, benefiting other manufacturers and component suppliers.

Competition in the Indian EV market is intensifying. Tata Motors currently dominates the passenger EV segment, followed by Mahindra & Mahindra and MG Motor. New entrants, including Hyundai and Kia, are also planning to launch EVs in India, further crowding the market. BYD will need to differentiate itself through innovative technology, competitive pricing, and a robust after-sales service network to gain a significant market share. The company's blade battery technology, known for its safety and energy density, could be a key differentiator.

The coming months are expected to be crucial as BYD finalizes its expansion plans. Analysts predict that a decision on local production could be announced within the next quarter, potentially paving the way for a new wave of EV manufacturing in India and further accelerating the transition towards sustainable transportation.