The competition among global corporations targeting India's electric vehicle market, where Hyundai Motor Group is increasing investments, is fierce. As BYD and Tesla vie for the top two spots in global electric vehicle sales, Vietnam's VinFast and Japan's Toyota are also joining the fray.
On the 8th, industry sources said that rumors were circulating that BYD would invest 10 billion yuan (about 2 trillion won) to establish an electric vehicle and battery production plant in Telangana, India. BYD refuted the investment rumors, and the Indian Ministry of Commerce stated that it would not approve BYD's investments, noting that Telangana is a region often referred to as India's Silicon Valley, where Hyundai is making substantial investments.
India is a representative market where BYD is accelerating its expansion. Last year, BYD's sales in India reached 3,500 units, accounting for less than 0.1% of global sales (4.27 million units).
In 2023, BYD also pursued the establishment of a factory in India worth $1 billion (about 1.4 trillion won), but had to put the plan on hold as authorities rejected it for reasons related to national security. At that time, BYD submitted an investment proposal to the Indian side in partnership with local company Mega Engineering & Infrastructure.
As demand for electric vehicles in India grows amid declining global demand, automobile companies including Hyundai are seeking opportunities to expand their local businesses. Last year, electric vehicle sales in India increased by 20% compared to the previous year, while overall automobile sales, including internal combustion engine vehicles, only rose by 5% during the same period.
Hyundai has been focusing on the Indian market for several years, identifying it as a strategic hub for expanding its electric vehicle business after internal combustion engines. Hyundai Motor India became the first overseas subsidiary to be listed on the local securities market in October last year, and it has also achieved record sales in the first quarter, indicating tangible success. In the fourth quarter of this year, the company is set to begin operations at the Talegaon plant in the western Maharashtra region, which it acquired from General Motors (GM) in 2023.
Tesla, BYD's largest competitor, is also exploring opportunities to enter the Indian market. Last month, Tesla decided to establish its first showroom in Mumbai and began recruiting staff, with CEO Elon Musk expected to visit India later this year. Tesla is also reported to be scouting for sites to set up a factory in India.
Investments in the Indian market by Vietnam's VinFast and Japan's Toyota are also continuing. VinFast began constructing an electric vehicle and battery plant in Tamil Nadu, southern India, in February, with an investment scale projected to reach up to $2 billion (about 2.8 trillion won). Meanwhile, Toyota is pursuing the construction of its third factory in India and plans to establish a research and development (R&D) center by 2027.