BYD to Invest $10 Billion in Telangana

Chinese electric vehicle (EV) giant BYD has unveiled plans for a massive $10 billion investment in Telangana, aiming to establish a major manufacturing facility near Hyderabad. This move marks a significant expansion into the Indian market and positions Telangana as a key hub for EV production. The facility is expected to roll out 600,000 electric vehicles annually by 2032.

Telangana rolls out the red carpet

The Telangana government has extended full support to BYD, offering a 500-acre industrial site on the outskirts of Hyderabad. The plant will not only serve as an EV assembly unit but also feature a state-of-the-art 20 GWh battery production facility, reinforcing BYD’s commitment to localizing its supply chain in India. Sources suggest that the state has shortlisted three potential sites, with BYD representatives currently assessing them before finalizing an agreement.

Revanth Reddy’s first big industrial coup?

The announcement follows years of negotiations and regulatory hurdles, including the Indian government’s 2023 rejection of a previous BYD proposal due to security concerns over Chinese investments. However, recent developments indicate that key roadblocks have been cleared, possibly due to sustained efforts by Telangana Chief Minister A. Revanth Reddy. Since taking office in December 2023, Reddy has prioritized attracting global industrial giants, and the state’s aggressive EV policy—offering incentives such as 100% road tax exemptions—has made Telangana an attractive destination for BYD.

BYD, which surpassed Tesla in global revenue with $107 billion in 2024, aims to use this plant to cut costs inflated by high import duties on its vehicles in India. Its existing partnership with Hyderabad-based Olectra Greentech—responsible for manufacturing electric buses using BYD technology—has further solidified Telangana as the preferred location over competing states.

“This isn’t just an assembly plant—it’s a full-fledged production base that will drive jobs and innovation,” a BYD spokesperson stated.

With advanced technologies like its Blade battery and a groundbreaking 1 MW flash charger capable of delivering a 400-kilometer range in just five minutes, BYD is strategically positioning itself ahead of competitors like Tesla in India’s fast-growing EV market.

A Game-Changer for Telangana’s economy

If the project moves forward, the Telangana plant could generate thousands of jobs, stimulate local industries, and establish Hyderabad as a global EV manufacturing powerhouse. However, final approval from the central government remains a crucial step, given past geopolitical tensions with China.

For now, BYD’s Telangana venture represents a bold bet on India’s clean energy future—one that could reshape the country’s EV landscape.