BYD, an acronym for ‘Build Your Dreams,’ is a distinguished Chinese electric vehicle company making global waves. Regarded as the second most successful company in the electric vehicle (EV) sector, it has even challenged Tesla for the title of the world’s largest EV maker. BYD embarked on its Indian journey in 2007, establishing operations in Chennai and laying the groundwork for its ventures in the country.
A notable achievement in BYD’s Indian chapter was the introduction of its first pure electric bus, the BYD K9, marking the beginning of its impactful presence. Over the years, the company has expanded its portfolio in India by launching electric buses, trucks, the BYD e6, BYD Atto 3, and more. Despite achieving substantial success in sales and establishing a strong foothold in the Indian market, BYD faces and has faced many challenges to strive in the Indian Market.
In 2023, BYD’s total production soared to an impressive 3.02 million units, surpassing Tesla’s figures. However, the journey to navigate the intricacies of the Indian EV market remains riddled with roadblocks. In this article, we delve into the challenges that BYD faced in India last year and then see the future plans that BYD has in India’s evolving EV landscape.
But before going on to the main topic, let’s just quickly recall shortly about the beginning of BYD, its entry into the Indian Market, and its sales in 2023.
A GIST ABOUT BYD
Founded in 1995 in Shenzhen, China, BYD Company Ltd., or “Build Your Dreams,” initially focused on rechargeable batteries. Over the years, it has evolved into a leading manufacturer of batteries, automobile components, and cell phone parts. Key subsidiaries, BYD Auto Co., Ltd., and BYD Electronics (International) Co., Ltd., were established in 2003 and 2007, respectively.
Operating in over 50 countries, BYD is a pioneer in sustainable development, holding over 19,837 patents in China and 3,411 overseas as of 2021. The company’s commitment to innovation is evident in its robust R&D investments, totaling 10.6 billion yuan in 2021, contributing to a remarkable revenue growth of 216.1 billion yuan by the year’s end.
BYD made its entry into the Indian market in 2007, initially focusing on the production of batteries and components for mobile phone manufacturers. The transition towards electric mobility commenced in 2013 when BYD India introduced its first electric bus, the BYD K9, to Chennai on August 20. As of 2023, BYD India operates two factories and has made substantial investments, exceeding $150 million, in the Indian market.
Over the years, the company has expanded its portfolio in India by launching electric buses, trucks, the BYD e6, BYD Atto 3, and more. In 2023, BYD excelled in sales, reaching a total of 30,24,417 units and experiencing a substantial 61.9 percent year-on-year growth globally. BYD India’s outstanding performance was particularly noteworthy, registering an impressive 341 percent year-on-year sales growth.
ROADBLOCKS IN SUCCESS GEOPOLITICAL HURDLES
Electric vehicle manufacturers BYD and Hyderabad-based Megha Engineering and Infrastructures Limited (MEIL) had jointly submitted a proposal for establishing a four-wheeler manufacturing factory in Hyderabad, aiming for a production capacity of 10,000-15,000 units. The proposed investment was estimated to be close to $1 billion. Although the companies submitted their proposals to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian Government did not accept the proposal. The reluctance was attributed to security concerns and border tensions, particularly expressing reservations about allowing the Chinese electric vehicle maker BYD to establish operations in the country, as reported.
DELAYED PRODUCT LAUNCH
BYD has encountered noteworthy challenges due to delays in product launches and hurdles in obtaining homologation certificates for its eagerly awaited SUV. These setbacks have significantly impeded the launch of both the localized version of the SUV and the imported Seal EV, originally slated for release this year. The Seal EV, initially scheduled to arrive in Q4 of 2023, faced setbacks in the homologation process. However, as per the latest reports, the Seal EV is now anticipated to be launched on March 5, marking a crucial development in overcoming the delays and challenges faced by BYD in bringing its innovative electric vehicles to the Indian market.
TAX UNDERPAYMENT ISSUE
BYD faced a significant obstacle when it came to light that the company was fined a substantial $9 billion by the Directorate of Revenue Intelligence for tax underpayment in 2023, as reported by Reuters. The issue reported is that the company paid too little tax on imported parts for cars it assembles and sells in the country. This setback not only disrupted BYD’s expansion plans in India but also compelled the company to inform its joint venture partner in India about the decision to cancel a proposed $1 billion investment in the production of electric cars in the country. The incident highlights the challenges posed by the tax underpayment to BYD’s strategic investments and operations within the Indian market.
DENIAL OF INDIAN VISA
BYD Auto officials have encountered obstacles in securing Indian visas for over a year, hindering their plans to visit India for in-person discussions with Megha Engineering and Infrastructure Ltd executives regarding an electric vehicle (EV) project. Due to visa constraints, meetings between BYD and Megha executives have been relocated to neighboring countries like Nepal, Sri Lanka, and China. The denial of Indian visas to BYD executives, without an official explanation, is seen against the backdrop of strained India-China relations, particularly heightened after clashes in the Galwan region of Ladakh. This trend extends beyond BYD, affecting several other Chinese companies in various sectors attempting to obtain Indian visas, as reported by Mint.
FUTURE PLANS OF BYD IN INDIA
BYD’s Future Plans in India: Despite facing challenges in meeting conditions for lower taxes, leading to liabilities of 70% to 100% based on the car’s value, BYD is determined to regain momentum in 2024. The company has set ambitious sales targets, aiming to match the figures planned for 2023. Recent Developments: In a resilient move, BYD continues its push in the Indian market. Recent reports suggest that BYD dealers are unofficially accepting bookings for the Seal EV. This electric vehicle, making its debut at Auto Expo 2023, marks BYD’s third offering in India’s competitive passenger vehicle segment. It is slated to launch on March 5, 2024.
Product Strategy and Market Competition
BYD’s Seal EV introduces two battery pack options – a 61.4 kWh unit with a commendable range of up to 500 km CLTC and a more extensive 82.5 kWh unit reaching up to 700 km CLTC. With this strategic product offering, BYD aims to challenge and compete with established players like Kia EV6 and Hyundai Ioniq 5 in India’s rapidly evolving electric vehicle market. Dolphin Trademark: Adding to the intrigue, BYD has trademarked the name “Dolphin,” sparking anticipation for a possible upcoming launch. BYD had filed a trademark for the Dolphin EV in India, positioning it as the brand’s most budget-friendly electric offering.
The 4-door electric hatchback will measure over 4.2 meters and will feature a 60.4 kWh battery pack, providing a maximum range of 427 km. Its electric motor is expected to generate 201 BHP and 290 Nm, allowing the Dolphin to accelerate from 0-100 km/h in 7 seconds with a top speed of 160 km/h. Additionally, a smaller 44.9 kWh unit variant may offer a range of 340 km (WLTP cycle).
BYD will highlight the impressive charging capability, noting a 30-80% charge in just 29 minutes using a 100 kW DC charger, and the car will feature VtoL or ‘Vehicle to Load’ capability. This move underscores BYD’s commitment to expanding its product portfolio and making significant strides in the Indian automotive landscape.
SHIFT TO SODIUM-ION BATTERIES
After surpassing its major rival Tesla in sales last year, BYD now aims to shift its focus from lithium-ion batteries to sodium-ion batteries, aiming for more efficient, affordable, and environmentally friendly options. The company plans to establish a new sodium-ion battery facility with an annual production capacity of 30 GWh, specifically targeting micro vehicles and scooters in the electric vehicle (EV) market. BYD’s subsidiary, Findreams Battery, has joined forces with tricycle giant Huaihai to make a Sujo sodium battery production plant, with a focus on micro vehicles and scooters.
The collaboration, initiated on November 18 in Shenzen, aims to leverage the benefits of sodium-ion packs for these types of vehicles, presenting a promising partnership between BYD and Huaihai. This collaboration isn’t the first between BYD and Huaihai. In November 2022, they joined forces to build a standard plant in Sujo, scheduled for completion in March 2024, covering an area of 31,000 square meters. The benefit of this mission would be that Sodium-ion batteries are well-suited for lower-end range vehicles with lower energy density requirements, making this collaboration significant for the future of EV technology.
