As India’s top two carmakers, Maruti Suzuki and Hyundai Motor India, prepare to enter the mainstream electric vehicle (EV) market in 2025, BYD, the world’s second-largest electric carmaker, is considering introducing a B-segment or mid-size electric SUV priced around Rs 20 lakh.
The company is currently evaluating and shortlisting several models for the Indian market. If the exploration concludes favorably, BYD India could enter the Rs 20 lakh EV segment by the second half of 2025, positioning itself to challenge Hyundai’s Creta EV and Maruti Suzuki’s eVX.
The model may be showcased at the upcoming Bharat Mobility Show in January 2025, which could serve as a platform to gauge potential buyers’ interest in the SUV.
Rajeev Chauhan, Head of Electric Passenger Vehicles (EPV) Business at BYD India, told Autocar Professional that another SUV will be added to their portfolio in 2025.
“There are many auto companies in India conducting research, including ours. There is a plan to introduce another SUV, with a price range from Rs 20 lakh to Rs 50 lakh. We should have one SUV next year, but the final decision will depend on the outcome of our study,” Chauhan stated.
The newly appointed EV head at BYD India explained that the company would closely monitor mainstream players and their products before finalizing its own offering.
“Our products are not yet positioned in the Rs 15 lakh to Rs 25 lakh market, which is a large market. We are working towards that and learning from it to develop the right business case to enter the next orbit,” Chauhan added.
BYD will also face competition from market leader Tata Motors, which is expanding its portfolio, and Mahindra & Mahindra (M&M), which is set to launch a range of electric SUVs. However, BYD will need to go beyond relying on imported vehicles to establish itself in India’s competitive market, requiring a full-fledged manufacturing facility.
Manufacturing Plans
The Chinese new energy vehicle specialist, which recently challenged Tesla for the top spot globally in the EV space, is rumored to be in talks with Indian conglomerates Reliance Group and Adani to build a local manufacturing portfolio. However, a project with Olectra to manufacture cars fell through, as the foreign direct investment (FDI) proposal faced regulatory issues, and contract manufacturing is currently not being considered.
While Chauhan did not provide specific details, he mentioned, “BYD is keen to start full-scale manufacturing. Until that is finalized, we will continue offering our global products to Indian consumers.”
Local manufacturing, however, will not start before 2025. Until then, the company will focus on expanding its product portfolio and building brand awareness.
Currently, BYD operates a small assembly base in Tamil Nadu but relies heavily on completely built imports due to homologation challenges. The company also faced controversy in 2023 for failing to meet the conditions required for lower tax rates on imported car parts, leading the Department of Revenue Intelligence (DRI) to seek $9 million in penalties.
This has kept BYD India’s volumes low, with the company selling over 2,300 units in 2023. So far this year, sales have crossed 2,000 units. Chauhan remains optimistic, expecting a 40% growth in sales by year-end and aiming to reach 10,000 units annually within the next two years.
BYD plans to expand its product portfolio and increase its dealership network from 27 to 47 outlets next year, with a focus on entering tier II cities while maintaining a presence in major cities.
Having recently launched the Seal saloon EV, BYD India has strategically added products to its portfolio, including a smaller battery version of the Atto 3 SUV, which has made pricing more accessible. The company will introduce the eMax 7, a 7-seater MPV based on the existing E6, during the festive season, with a new SUV following in 2025.
“We are focusing on tapping into the MPV segment, which has doubled to almost 10% of the market in recent years. There is no MPV EV alternative yet, and we aim to capitalize on that. This expanded portfolio should help us grow from 5,000 cars to 10,000 or 15,000 vehicles in the coming years, laying a strong foundation for future growth,” Chauhan added.
Hybrid Strategy
When asked about the potential launch of the entry-level Dolphin EV in India, Chauhan said that the focus is currently on building the SUV portfolio.
In addition to battery electric vehicles (BEVs), BYD’s global sales also include a significant share of plug-in hybrid vehicles. Of the approximately 3 million units sold last year, about 1.7 million were plug-in hybrids.
Chauhan acknowledged the growing interest in hybrid vehicles in India over the past 18 months. If this trend continues, BYD may introduce its global plug-in hybrid cars in India within the next two years.
“Plug-in hybrids are one of our strengths. We are evaluating the option and will study the market for another 6-8 months. If demand continues, we will offer a plug-in hybrid model at an affordable price,” Chauhan explained.
BYD’s homegrown competitor, Shanghai Automotive’s Indian subsidiary JSW MG Motor India, has also announced plans to introduce locally produced hybrid vehicles. After receiving equity infusion from JSW Group, MG Motor India aims to build a portfolio of hybrids, plug-in hybrids, and battery electric vehicles.
Parth Jindal, Director of JSW MG Motor India, has already declared that the company aims to sell 1 million electrified vehicles by the end of this decade and lead the new energy vehicle segment in India, the world’s third-largest passenger vehicle market.
BYD India’s volumes have remained modest despite its parent company’s global stature as an EV giant. To make inroads into the Indian market, BYD is willing to invest billions of dollars, with or without a local partner.
Since 2020, the geopolitical climate has added extra scrutiny to Chinese investments in India. Media reports speculating that the Chinese government has instructed its carmakers not to offer their technology to Indian and other global players have also contributed to uncertainty.
However, recent signs of improvement in India-China relations, such as troop withdrawals from the Galwan border, may offer a glimmer of hope for improved trade ties.