Chinese EV maker BYD Co. (BYDDY) is looking to set up a base in India and is teaming up with a local company to make vehicles and batteries in the country, according to Reuters.
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The company in partnership with India’s Megha Engineering and Infrastructures, has made a $1 billion proposal with Indian authorities for the joint venture. BYD is the world’s largest manufacturer of EVs and hybrid vehicles and is planning to set up a range of BYD-branded EVs in India.
Interestingly, the development comes just as Tesla (NASDAQ:TSLA), BYD’s key competitor, began talks with the Indian government to set up a 500,000-vehicle plant in India. BYD continues to expand its global footprint rapidly and already provides its Atto 3 SUV and the e6 model to corporates in India.
Further, the two partners are also planning to set up charging infrastructure in India and already produce electric buses under Olectra Greentech, a previous joint venture.
While BYD shares have surged nearly 32% year-to-date, a price-to-earnings multiple of 33.6 makes the stock a tad expensive at current valuations.
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