China's BYD plans Atto 2 EV for India amid easing ties
What's the story
Chinese electric vehicle (EV) giant BYD is gearing up for a major comeback in India. The company is planning to launch its affordable Atto 2 electric SUV, as diplomatic ties between India and China imporve. This move comes after a five-year period of remote operations due to strained bilateral relations and travel restrictions.
Leadership visit
BYD is obtaining visas for senior managers and engineers
The easing of travel restrictions will allow Ketsu Zhang, BYD's India Managing Director, to visit the country in the coming months. The company has already started obtaining visas for its senior managers and engineers. This will enable them to restart training programs, service machinery, and evaluate their factory's condition in southern India.
Market competition
BYD plans to launch Atto 2 compact e-SUV
BYD is considering launching its Atto 2 compact electric SUV in India early next year. This would be the company's most affordable offering in the country and a direct challenge to local mass-market makers such as Mahindra & Mahindra and Tata Motors. Despite a 70% levy on imported cars, BYD plans to price the Atto 2 well under ₹20 lakh.
Expansion strategy
Plans to meet government officials and visit factory
Currently, BYD sells four electric cars in India: Sealion SUV, Seal sedan, Atto 3 SUV, and eMAX 7 MPV. The company is the fourth-largest electric carmaker in India by sales. During Zhang's visit, he is expected to meet Indian federal government officials and visit BYD's passenger vehicle plant. The company also plans to seek local regulatory approval for roadworthiness to import more vehicles than its current quota of 2,500 cars a year.
Future prospects
BYD is in talks with Adani Group for potential partnership
Executives at BYD are likely to explore battery pack assembly proposals at a later stage. The company is also in talks with the Adani Group for a potential partnership on lithium-ion battery manufacturing. This expansion comes as India ramps up efforts to attract global automakers and EV supply chains, furthering its ambitions of becoming a clean vehicle manufacturing hub.