Chinese electric vehicle manufacturer BYD has emerged as a strong competitor to Tesla, earning a favorable reputation in the market. Unlike Tesla, which offers only two models, BYD provides a wide range of vehicles including sedans and SUVs. The company is planning to launch its Atto 2 compact sedan in India and is in discussions with the Indian government to manufacture these cars locally. This move follows earlier trade tensions and Trump-era tariffs that had made importing Chinese cars expensive, limiting consumer uptake despite BYD’s popularity. A senior delegation from BYD is expected to visit India to explore opportunities and ensure a competitive launch of the Atto 2 within the next six months.
BYD uses lithium-ion batteries in its electric vehicles and is approaching Indian conglomerates, including the Adani Group, for potential production partnerships. While the company already has longstanding agreements with Hyderabad-based Olectra for bus manufacturing and another local firm for trucks, it now plans to produce cars independently through a domestic partner. Telangana has been identified as a preferred location for investment and local manufacturing, with the state government reportedly offering support, although final approvals from the central government are still awaited.
The local production plan is expected to make BYD cars more affordable for Indian consumers, boost market penetration, and strengthen the company’s presence in India’s growing EV sector. BYD officials are scheduled to meet with government authorities and ministers to finalize plans, study investment opportunities, and explore long-term collaboration for electric vehicle manufacturing in the country.