BYD proposes $1B plan to build EVs in India By Investing.com

Reuters reports in an exclusive report Friday that BYD Co (OTC:), China’s largest producer of EVs, has submitted a $1 billion investment proposal to build electric cars and batteries in India with its privately held partner, Megha Engineering and Infrastructures.

According to three people familiar with the situation, BYD and Megha submitted the proposal to Indian regulators to form an EV joint venture, with a long-term plan to build a full line-up of BYD-brand electric vehicles in the country.

BYD has already invested $200 million in the country The company offers the Atto 3 electric SUV and the e6 EV to corporate fleets, and plans to launch its Seal luxury electric sedan this year.

BYD’s push into India is part of its rapid global expansion to challenge Tesla (NASDAQ:), which recently renewed talks with India’s government after placing plans to enter the country on hold last year.

One of the unnamed sources revealed that the automaker has plans to scale up to production of 100,000 EVs annually in India over a few short years. However, they would likely begin shipping the vehicles in parts for assembly in the country as they work to build up a more stable supply chain.

The investment proposal also includes a plan by BYD and Megha to set up charging stations in India and build research and development and training centers.

BYD will face stiff competition in India from Tata Motors Ltd (NS:), a leading domestic automaker, and MG Motor, another Chinese rival.