BYD’s Strategic Masterstroke Of Outsmarting Tesla In The EV Race
BYD (Build Your Dreams), an electric vehicle manufacturer, has announced plans to locate its manufacturing facility in Telangana. BYD is concentrating on other regions where EV demand may increase, while Chinese EV manufacturers are subject to higher import taxes in the US and Europe. The business plans to invest Rs 85,000 crore ($10 billion) in its cutting-edge Indian manufacturing facility.
Does this imply that BYD will have an edge over Tesla when it makes its eagerly anticipated debut in the Indian market? The Chinese electric vehicle can localize its production by establishing a manufacturing facility. We explain how this brilliant move for BYD in the Indian market was made.
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By deciding to establish its first manufacturing facility in India, BYD has demonstrated its commitment to the Indian market. Companies like BYD are given a much-needed boost by the Indian government’s new, reduced EV tariff rates. Telangana government officials stated that the state government had designated 200 acres of land for BYD.
In a joint venture with the Megha Engineering & Infrastructure Limited (MEIL) firm, based in Hyderabad, BYD hopes to construct the plant. Both businesses proposed this joint venture two years ago, but the state government turned it down. For BYD, things appear to be going well this time.
The Sealion 7, eMAX 7, Atto 3, and Seal are the four passenger EVs that BYD now offers. However, the company’s largest obstacle has been importing these models directly, which has caused them to price them in the luxury market. Following the construction of the manufacturing plant, BYD’s Completely Built Units (CBU) will be constructed or assembled here, significantly reducing costs and increasing sales.
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Initially, the Elon Musk-led company will import cars straight from its Berlin, Germany, facility before making its eagerly anticipated debut in India. According to reports, the company wants to introduce an EV that is reasonably priced at less than Rs 25 lakh. It’s noteworthy that the Model 3, Tesla’s current entry-level EV, costs about Rs 30 lakh.
In the second half of 2025, Tesla plans to introduce an affordable model of the Model 3 or Model Y. According to Kumar Rakesh, Analyst-IT & Auto, BNP Paribas India, management is guiding to a price of $30,000 after IRA subsidies of EUR 7.5k in the US, implying an ex-subsidy price of $37,500. Once 15% customs duties are taken into account, Tesla will be deemed costly for mass production in India, even if it can manufacture and sell for as little as $30,000.
