Tesla long-awaited entry into India’s electric vehicle (EV) market may face unexpected competition from Chinese automaker BYD. While Tesla has been planning to set up a manufacturing plant in Maharashtra, BYD is reportedly considering its own factory in Telangana. This move could potentially weaken Tesla growth prospects in the price-sensitive Indian market.
Tesla has faced numerous delays in entering the Indian market, allowing local and international competitors like BYD, Mahindra, and Tata to establish their presence. These companies have capitalized on the growing demand for electric vehicles, making it more challenging for Tesla to disrupt the market significantly.
Initially, BYD had planned to rely solely on imports for its EV sales in India, but sources suggest the company is now reconsidering this strategy. BYD’s CEO, Rajeev Chauhan, confirmed that the company is evaluating opportunities for local manufacturing, especially as it eyes partnerships with Indian firms for joint ventures similar to MG Motor’s collaboration with JSW Group.
In January 2025, reports revealed that BYD was in talks to set up a manufacturing plant in Telangana, with the state government suggesting three potential locations. While the project is still unconfirmed, BYD’s interest in India’s EV market has grown as local conditions improve, and the company seeks to expand its footprint in Asia’s third-largest automobile market.
India’s government has been cautious in allowing Chinese companies to dominate its EV industry. With the rise of companies like BYD, there is a concern that the Indian EV sector may struggle to grow amid cheap and efficient imports from China. However, political shifts between India and China could pave the way for greater collaboration in the EV sector.
Ultimately, BYD’s potential manufacturing plans in India, coupled with its strong global presence, may present a serious challenge for Tesla’s expansion. While Tesla has ambitions to lead the market, BYD’s move could place it in direct competition for dominance in India’s growing electric vehicle landscape.
