The country is on track to become an electric vehicle hub as car giants like Tesla and BYD pour capital in turn.

This country is currently Asia's hottest electric car 'base': BYD has just poured capital to build a factory of more than 1 billion USD, Tesla has set up a factory with a capacity of 500,000 vehicles

The country is on track to become an electric vehicle hub as car giants like Tesla and BYD pour capital in turn.

According to Reuters, China's BYD recently submitted a proposal for a $1 billion investment to build electric cars and batteries in India in partnership with a local company. Specifically, BYD and private company Megha Engineering and Infrastructures have submitted a proposal to Indian regulators to set up an electric vehicle joint venture.

The source, who asked not to be named, said the long-term plan is to produce a full line of BYD-branded electric vehicles in India, from hatchbacks to luxury models.

BYD's push into the Indian market is part of a rapid global expansion to challenge Tesla, which is a leader in electric vehicle sales. If the investment in India is approved, it will give BYD a presence in all major global car markets except the US.

Tesla recently restarted negotiations with the Indian government after halting plans to enter the market last year due to a failure to achieve lower tariffs on imported vehicles. The company will also build an electric vehicle factory in India with a capacity of 500,000 vehicles per year.

BYD has invested $200 million in India, where it is selling the Atto 3 and e6 electric SUVs to its fleet, and plans to launch the Seal luxury electric sedan this year.

As for battery and electric vehicle maker Blade, it plans to scale up production of 100,000 electric vehicles annually in India in a few years, but will likely start with shipping vehicle parts for assembly. assembled in the country as they work to build their supply chains.

This country is currently Asia's hottest electric car 'base': BYD has just poured capital to build a factory of more than 1 billion USD, Tesla has set up a factory with a capacity of 500,000 vehicles - Photo 2.
The sources said the investment proposal also includes plans by BYD and Megha Engineering to set up charging stations in India, and to build research and development and training centers.

From 2020, India tightens supervision of investment from neighboring countries, including China. Those controls forced China's Great Wall Motor to shelve a $1 billion investment plan in the Indian market and prompted China's state-owned auto maker SAIC's MG Motor unit to seek new competitors. local cooperation.

BYD entered the Indian market in 2007, producing batteries and components for mobile phone manufacturers. In 2013, they started building electric buses with Megha Engineering, part of the joint venture Olectra Greentech.

BYD has sold a total of 1.86 million vehicles in 2022. In India, electric vehicles account for just over 1% of the total 3.8 million vehicles sold in 2022 but the Government wants to grow this to 30 % by 2030.

In India, BYD will compete with domestic carmaker Tata Motors and Chinese rival MG Motor, which currently dominates sales of electric cars.

An Asian country has just been "chosen to send gold" by Tesla to build a factory with a capacity of 500,000 cars/year

This will be the second Asian country after China chosen by Tesla to build a factory with an annual capacity of up to 500,000 electric vehicles.

The Times of India reported that Tesla, the world's leading electric car company, has begun discussions with the Indian government about a proposal to invest in setting up a car factory in this country with an annual capacity of up to 500,000. electric car.

Prices for the vehicles will start from 2 million rupees, or more than $24,000, the report added. The company led by billionaire Elon Musk is also considering using India as an export base as it plans to ship cars to countries in the region.

The company led by billionaire Elon Musk is also considering using India as an export base as it plans to ship cars to countries in the Indo-Pacific region, the report cites. Government sources added.

Discussions with the Indian government indicate a shift in the US electric carmaker's strategy.

Last year, negotiations stalled after the Indian government refused to agree to Tesla's request to reduce import duties on cars, which could be up to 100%.

India is keen for Tesla to make vehicles locally, but the company said it wants to export its cars first so it can test the level of demand in this market.

In new efforts to enter the domestic market with a change of stance, Tesla held discussions in May with officials about incentives offered by the Government for car and battery production. , Reuters reported.

During his meeting with Musk last month, Indian Prime Minister Narendra Modi pushed the automaker to make a significant investment in the country.

India has strong potential for a sustainable energy future including solar power, stationary batteries and electric vehicles, billionaire Elon Musk said after meeting with Modi, adding that he hopes hopes to bring SpaceX's Starlink satellite internet service to the country.

In 2022, Tesla's total revenue reached $81.5 billion, up 51% from 2021 with vehicle sales reaching 1.31 million vehicles. Even so, the result is still below Wall Street and Tesla's own expectations for 50% year-over-year growth, towards its goal of delivering 1.4 million vehicles in 2022.

Tesla is expected to produce about 1.8 million cars in 2023. "As we move into 2023, we see the short-term effects of an uncertain macroeconomic environment, especially in light of the backdrop of an uncertain macroeconomic environment. interest rates rise," the Tesla report said.

In addition, Tesla also confirmed that the company will accelerate its path to reducing costs and moving towards higher production rates.

According to Reuters