China’s BYD Co (002594. SZ) – which counts Buffett’s Berkshire Hathaway as an investor – has submitted a $1 billion investment proposal to build electric cars and batteries in India in partnership with a local company, three people with direct knowledge of the plan told Reuters. The sources said that the company aims to scale production of 100,000 electric vehicles in India within a few years by shipping vehicle components for assembly in the country and establishing a supply chain. They added that the long-term goal is to build a full lineup of BYD-brand EVs in the country, from hatchbacks to luxury models.
The India plan forms part of BYD’s rapid global expansion to challenge Tesla, which leads the world in EV sales. If approved, the venture will give BYD a presence in all significant global markets except the United States.
In addition to EVs, BYD is expanding its battery business in the country, which will be a crucial source of future growth. The company has set up a battery production plant in the northern city of Gurugram and is also building another facility in the western state of Rajasthan. It will produce various batteries for consumer and industrial applications, including nickel-iron sulfate, lithium-ion, and phosphate.
This year, Uttarakhand in India has mandated that all buildings with more than 1,500 square meters be equipped with charging points for EVs. It is part of a more significant push in the country to boost the adoption of vehicles and reduce pollution, which has become a severe health concern.
Thailand, which has one of the highest rates of EV ownership in Asia, saw a record 1.3 million new EVs sold last year, up from just over 110,000 in 2016, according to the country’s traffic department. However, it is still just a fraction of overall vehicle sales. The country is looking to boost the number of EVs by requiring all new homes built from 2022 onwards to come with an electric power plug and offer dedicated charging stations.
The government has also announced tax breaks for EV owners and is working to build an electric infrastructure in the country. The country has a network of over 36,000 km (2,200 miles) of high-speed rail, which can transport EVs and make them easier to travel. In addition, several large companies have begun to work with EVs. For example, Bengaluru-based same-day delivery start-up Blowhorn has partnered with Japanese automakers Honda and Denso to launch a fleet of EVs for commercial deliveries. The e-bikes feature battery-swapping technology and are fitted with mobile refrigeration units from DENSO. The vehicles are used by companies such as Zomato and Kotak Mahindra Prime, the private banking arm of Kotak Mahindra Bank.
