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BYD CARS IN INDIA: CAN THEY MAKE A DENT?1

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Makrand Manjul Shandilya, Parijat Upadhyay, and Prabin Kumar Panigrahi wrote this case solely to provide material for class
discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may
have disguised certain names and other identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveypublishing.ca. Our goal is to publish

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materials of the highest quality; submit any errata to publishcases@ivey.ca. i1v2e5y5pubs

Copyright © 2023, Ivey Business School Foundation Version: 2023-10-06

In October 2022, BYD Auto Co., Ltd. (BYD), a Chinese car company, announced its entry into the Indian
automobile market with its electric sports utility vehicle (e-SUV) Atto 3. For BYD, 2022 had been a busy
year, starting with an announcement that the company would enter the Japanese market with its passenger
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electric vehicles (EVs) in 2023. With a target to manufacture and sell 15,000 EVs in India by the end of
2023, the company also planned to set up a manufacturing plant in Thailand, as well as an additional thirty
plants in the United States, Brazil, and India.2 This expansion made the intention of the Warren Buffet-
backed company clear: to diversify into new markets around the globe.3

BYD’s push into India coincided with a period in which India was keeping a close eye on investments from
bordering nations, including China. Earlier that year, the same scrutiny had resulted in Great Wall Motor Co.
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Ltd, another Chinese carmaker, to drop plans to invest US$1 billion.4 This showed how difficult it would be
for any Chinese company to enter the Indian market. In addition, the EV market in India was at a nascent
stage, with infrastructure still developing in terms of charging stations and repair and maintenance facilities.

BYD’s target was to assemble and sell 15,000 EVs from its Chennai plant, establish manufacturing facilities
in India, and open fifty-three dealerships by the end of 2023 for a broader market share.5 The existing
Chennai plant had been established in 2007 and had been operating in India ever since. Using that existing
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plant would save BYD from having to obtain any new approvals from the government. The company
needed to determine which consumer segment to target, who its competitors were, and what
macroeconomic challenges it might face in order to understand how it might carve out a position for itself
within India’s competitive car market. Also, with such tight regulations and the negative image of Chinese
products in India, should the company enter the market or look to expand in another country?

INDUSTRY OVERVIEW
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The first time any vehicle was seen on Indian roads was in 1897, but it was not until 1930 that the first car
manufacturing plant was set up in India; before that, cars had to be imported. It was during the landmark
decade of the 1940s when companies like Hindustan Motors and Premier Ltd. set up manufacturing plants
in India and made cars for other firms. In the same decade, Mahindra & Mahindra Limited also began
producing utility vehicles.6

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Hindustan Motors debuted in 1942, followed by long-time competitor Premier in 1944, both of which

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produced products for Chrysler, Fiat Automobiles, S.pA., and Dodge. Mahindra & Mahindra was founded in
1945 and manufactured Jeep (CJ-3A) utility vehicles. At the same time, J. R. D. Tata, chair of the Tata Group,
established Tata Motors Limited (previously known as Tata Engineering and Locomotive Company) in
Jamshedpur. Just after India gained independence in 1947, the government and private sector worked together
to establish an automotive component manufacturing sector to supply the automobile industry.7

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Prior to the 1980s, the production of automobiles, particularly passenger cars, was subject to strict licensing,
a restrictive tariff structure, and limited possibilities for expansion. The first foreign collaboration in the
passenger car segment came when Maruti Udyog Limited and Suzuki Motor Corporation of Japan started
to work together, forming Maruti Suzuki India Limited (MSIL). Still, owning a car was difficult for most
Indians, due to affordability and the long waiting period for a vehicle.8

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Then, in the early 1990s, the Indian market opened up to foreign companies through liberalization; with it
came more Japanese manufacturers in the two-wheeler and commercial vehicle segments through
collaborative arrangements and joint ventures. In July 1991, the New Industrial Policy was announced, which
would see the automobile industry delicensed. However, this was not implemented until 1993, when the
passenger car industry was delicensed.9 MSIL, Hyundai Motor India Limited (HMIL), Honda Cars India Ltd.
(HCIL), Toyota Kirloskar Motor Private Limited, Nissan Motors India Private Limited (NMIPL), and Tata
Motors Limited (TML) were the new major firms in the young and enticing Indian passenger car market.
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The export of cars slowed in the early 2000s as the manufacturing process gained traction. MSIL was the
first car brand to ship vehicles to the major European markets. With the increase in the number of cars on
Indian roads, the issue of pollution also caught the government’s attention, which led to the introduction of
mandatory emissions standards to keep a check on vehicular pollution. The updated guidelines, based on
strict European standards and known as the Bharat stage emission standards, took effect in metropolitan
areas. The Indian government announced in 2016 that the country would forgo BS-V standards and adopt
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BS-VI standards by 2020.10

In 2015, India ranked sixth in the world in terms of passenger vehicle production, with an annual volume
of 2.6 million units. According to one industry report, passenger vehicle sales grew by 5 per cent in August
2015, driven entirely by four new models: the Honda Jazz, Ford Aspire, Hyundai Creta, and Maruti S-
Cross. Without these four models, overall sales would have shown a year-on-year dip of 5.6 per cent, which
would have reflected a sharp deceleration from the 17 per cent year-on-year sales growth in July 2015.
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After a decline in passenger car sales from 2.53 million units to 2.34 million units over 2012–2013 and
2014–2015, the Indian automobile industry witnessed a revival in sales in this segment, with sales standing
at 2.42 million units in 2015–2016. MSIL was the market leader, with 45 per cent, followed by Hyundai
Motor India Limited (25 per cent), Honda Cars India Limited (7 per cent), Nissan Motor India Private
Limited (6 per cent), and Tata Motors Limited (5 per cent). Most of these companies offered passenger cars
that catered to the entry- to mid-level industry segments, with limited sales in the premium segment.11

By 2021, the Indian passenger car market was valued at $32.07 billion, and by 2027 it was expected to reach
$54.84 billion while growing at a compound annual growth rate (CAGR) of more than 9 per cent between
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2022 and 2027. In 2021, the industry’s major companies were MSIL, Hyundai, Mahindra & Mahindra, Kia
Corporation, etc. (see Exhibit 1). With the change in government policy, new infrastructure, innovation, and
demand, the industry slowly moved toward electrification, following the rest of the world. A report by India’s
NITI Aayog and the United States’ Rocky Mountain Institute stated that India’s EV financing industry was
expected to reach $50 billion by 2030.12 A report by the India Energy Storage Alliance (IESA) stated that the
EV market in India was expected to grow at a CAGR of 30 per cent during the same period.13

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MSIL stated that it did not intend to launch its first EVs in India immediately. The electric Wagon R was

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spotted testing several times in 2022, but the company indicated that it would not launch an electric car
until the country’s EV market had matured. In contrast, HMIL had previously stated that it planned to
introduce six EV models in India by 2028. By the end of 2022, HMIL had already listed the loniq 5 EV
model on its website. During the same period, Mahindra & Mahindra was looking for avenues to launch its
first all-electric model in the form of the XUV400. As the country’s EV support infrastructure development

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was still in progress, the company partnered with Charge+Zone in a crucial move. This gave Mahindra &
Mahindra access to Charge+Zone chargers in twenty-five cities. Another EV manufacturer, Kia, would
deliver 200 units of its EV6 model to customers in India by the end of 2022. The number was already twice
the company’s target of 100 units. Kia also planned to launch its India-centric EV in the country by 2025
as part of its EV road map.14

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THE INDIAN AUTOMOBILE SECTOR: TURNING TOWARD ELECTRIC VEHICLES

In early 2020, the global EV market was expanding rapidly. EV volumes (including battery EVs [BEVs]
and plug-in hybrid EVs [PHEVs]) increased to 8.3 per cent in 2021 from 4.2 per cent in 2020 globally, with
6.75 million vehicles on the road (see Exhibit 2). This represented a 108 per cent increase by 2021. As EVs
contributed to the reduction of greenhouse gas emissions and helping the world in the face of energy crisis,
they started to gain popularity as a solution for a better future. Following global trends, the Indian EV
segment was also evolving rapidly. With a year-on-year increase in sales of 168 per cent, India saw sales
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of almost 0.32 million EVs in 2021. Factors leading to an increase in the adoption of EVs in India included
the agreement to cut carbon emissions made in Paris in 2015 and policies to reduce oil imports, improve
urban air quality, and decrease reliance on fossil fuels for energy.15

It was a period when India was ranked as the world’s fifth-largest automobile maker, and was on a path to
becoming the third biggest by 2030. The IESA expected the Indian EV sector to grow at a CAGR of 36 per
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cent. With the increase in population in India, demand for vehicles also increased, making the reliance on
conventional energy resources unviable since the country was already importing 80 per cent of its crude
oil. NITI Aayog also expected the automobile industry to achieve 70 per cent sales penetration of EVs for
all commercial vehicles, 40 per cent for buses, 30 per cent for private cars, and 80 per cent for two- and
three-wheeler vehicles by 2030. According to the Ministry of Heavy Industries, 0.52 million EVs were
registered in India during 2019–2022. Government initiatives and favourable policies and programs for EV
deployment resulted in robust growth of the EV industry in 2021.16
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To cater to this growing demand, several Indian car brands ventured into the EV segment. One segment of
Indian EVs that gained popularity was the compact hatchback. Tata Motors, one of the leading Indian car
manufacturers, introduced the Tata Tiago EV, which was a fully electric version of its popular Tiago
hatchback. The Tiago EV offered a range of up to 140 kilometres (km) on a single charge, making it a
suitable option for urban commuters.17

Another segment that gained traction in the Indian EV market was that of subcompact SUVs. Mahindra
Electric Mobility Limited (Mahindra Electric), a subsidiary of Mahindra & Mahindra, launched the
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Mahindra eKUV100, an all-electric version of its popular KUV100 subcompact SUV. With a range of up
to 147 km on a single charge, it was a practical option for city driving.18

The luxury electric car segment in India also saw some growth, with Tata Motors launching the Tata Nexon
EV. The Nexon EV was India’s first compact e-SUV and boasted a range of up to 312 km on a single
charge, making it a practical option for long-distance travel.19

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BYD AUTO

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BYD (which stood for “build your dreams”) was the automobile division of a Chinese multinational
corporation with headquarters in China’s Shaanxi Province. In 2002, after acquiring Qinchuan Automobile
Company, BYD Auto was established in January 2003. It manufactured buses, electric bicycles, trucks,
passenger cars, and batteries. Until March 2022, the company’s model lineup included BEVs, PHEVs, and

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internal combustion engine (ICE) vehicles.20

BYD was ranked fourth in the BEV and PHEV sectors with 7 per cent and 9.1 per cent, respectively, of the
global market share.21 The company initially sold its cars in central China, but 2022 saw the company’s
global expansion. It expected to sell 1.5–2 million cars globally, which was three to four times the previous
year’s volume. During the first half of 2022 the company claimed to have sold 641,000 EVs, leaving behind
its competitor Tesla Inc., and became the world’s largest EVs manufacturer. It achieved the milestone of

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becoming the first car manufacturer to sell 1 million new energy vehicles (NEVs) in a single year by
September of 2022.22

During the first half of 2022, the electric battery division of FinDreams Battery (the battery unit of Chinese
automotive conglomerate BYD), with a global market share of 12 per cent, ranked third-largest
manufacturer of EV batteries with a primary focus on lithium iron phosphate batteries.23

As part of its global expansion strategy, BYD announced plans for factories to manufacture EVs and buses
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in Brazil.24 The Ukraine war and the depreciation of the ruble (Russia’s currency), halted exports in July
2015. At that time, due to sales of 61,770 passenger vehicles, primarily PHEVs, BYD led sales of light-
duty highway-legal plug-in EVs (including both BEVs and PHEVs).25 In 2016, BYD maintained its position
as the world’s top-selling PHEV manufacturer, selling more than 100,000 units, a 64 per cent increase over
2015. Also, in 2016, BYD managed to sell over 100,000 NEVs in China. With 31,400 units sold, the BYD’s
Tang crossover was China’s bestselling plug-in vehicle in 2016.26
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In May 2020, the company declared that it would expand into Europe, beginning in Norway. BYD’s launch
would include the Tang model and a variety of commercial vehicles.27 In the meantime, Australian
government had also announced that its fleet would consist of 2,000 BYD EVs as part of the new taxi
operator ETaxiCo. BYD announced in July 2022 that its EVs would be sold in Japan beginning in 2023.
BYD x Rêver Automotive Co. Ltd.—the joint venture of Rêver Automotive as a distributor and provider
of after-sales service for BYD vehicles in Thailand as the Thailand Authorized Distributor—said that EVs
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would be sold in Thailand starting on October 10, 2022.28

BYD IN INDIA

Finally, in October 2022, BYD announced its entry into the Indian market with the Atto 3. BYD had a
target to sell 15,000 cars in the first year from its Chennai plant, which would be used for assembly of the
cars. The company planned to open twenty-four showrooms in twenty-one cities, starting in Chennai, by
the end of 2022. It also had an ambitious plan to have at least fifty-three showrooms across India by the end
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of 2023. Toward the end of October 2022, BYD opened four showrooms in a single week in Ahmedabad,
Mohali, Indore, and Gurugram, demonstrating the company’s ambitions.29

It was 2007 when BYD India was founded in Chennai, India, in addition to an electronics manufacturing
plant. The business covered mobile components, solar panels, battery energy storage, electric buses, electric
trucks, electric forklifts, chargers, rail transit, and more, also provided customers with product solutions
and related after-sales services.30 BYD India began investigating the Indian market for EVs in early 2013.

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The first fully electric bus arrived in the port of Chennai on August 20, 2013, establishing the BYD K9 as the

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first fully electric bus in Indian automotive history.31 BYD India had consistently invested significant effort
and resources in the country to ensure the trial operation’s success and to gain recognition in the local market.32

BYD India has worked in a variety of industries, including electronics manufacturing and the assembly of
electric buses and power batteries. BYD had two plants in India totalling over 140,000 square metres, with

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3,000 employees, and a total investment of over $200 million in the country, which made BYD’s plans to
enter the Indian market possible.33 It seemed to be the right move at a time when the Indian government
was trying to promote EVs and developing the associated infrastructure, and it utilized its presence on the
Indian subcontinent as a battery maker to enter the market with a target to sell 15,000 BYD Atto 3 units.
But BYD still had to face challenges in the form of competition, the existing negative image of Chinese
products, and under-developed infrastructure.34

BYD’s network rapidly expanded in late 2022, with the company actively opening showrooms to meet its

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target of twenty-four for the year in India. It had showrooms in Ahmedabad, Bangalore, Chennai, Gurgaon,
Hyderabad (Kun BYD and Mody BYD), Jaipur, Mumbai, and New Delhi by mid-November. The cost of
the Atto 3 at ₹3.39 million35 clearly demonstrated the company’s strategy of entering the Tier 1, middle-to-
high-income category.36

BYD was likely to face direct as well as indirect competition from the existing companies in the Indian passenger
car market. Some of them were homegrown companies, whereas others had strategic tie-ups with major foreign
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carmakers. The existing companies offered a variety of passenger cars in a price-competitive market.

BYD’S COMPETITORS IN INDIA

Maruti Suzuki India Limited

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Toward the end of 2022, MSIL shared its plan with the market that it was in no rush to roll out its EVs in
India. The company was looking for the appropriate entry moment and for the country’s infrastructure to
be adequately developed. Although the company’s electric Wagon R was spotted testing several times, the
company stated that when it entered the market it would do so in the upper category.37 During the same
period, the company was experimenting in the Indian market with hybrid technology. This technology
helped the company meet fuel efficiency and emissions standards. Models from the company had a dual
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battery setup that included a lithium-ion battery. These large batteries saved braking energy to support the
torque-assist and start-stop features of the engine. The lithium-ion battery's energy helped with acceleration,
enabling the engine to accelerate and operate at its best. MSIL leveraged its brand image of a “reliable and
affordable” vehicle to launch the Ertiga, Brezza, Ciaz, and Grand Vitara models in the EV segment.38

Hyundai

The South Korean car manufacturer has been in India for over two decades through its fully owned
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subsidiary, HMIL. It enjoyed a significant market share and was the second-largest company in the
passenger car segment after MSIL, with a brand image of “value for money” and “compact SUVs.”
Hyundai’s EV advertisements in India began in 2019 with the introduction of the Kona SUV. Even though
the segment was still in its infancy, HMIL was among the first foreign brands to develop an EV for the
Indian market. The South Korean carmaker expected to release six new EV models at various price points
by 2028 after critically analyzing the Indian EV market and considering multiple factors. It planned to do
so in collaboration with its sister brand, Kia, by targeting diverse market segments.39

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Tata Motors

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Tata Motors was among the first Indian automobile manufacturers to embrace EVs. It was far ahead of the
competition in assessing the EV space and had a slight first-mover advantage by the end of 2022. It
leveraged its “House of Tata” brand image in India and the “innovative and luxury” image following its
Jaguar Land Rover acquisition to bring its new cars to the market. The Tigor EV became the company’s

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first EV for private buyers and was expensive in 2019. In February 2022, this model accounted for 95 per
cent of total sales of EVs. Aside from that, the Ziptron technology, which was at the heart of Tata Motors’
EVs, ensured long-term battery and motor performance. It also allowed Tata Motors to sell electric variants
of its existing ICE vehicles, which included the Tigor and Nexon models. Nexon EV and Tigor EV were
Tata Motors’ EVs in India at the time.40

Mahindra & Mahindra

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Mahindra & Mahindra was a homegrown automobile firm with a significant presence in the utility vehicle
segment. The group’s EV venture was Mahindra Electric. Commercial and personal vehicles were all part
of the company’s EV portfolio. Mahindra Electric, a long-standing company in the automotive industry
with a brand image of being “tough and durable,” progressed rapidly by quickly acknowledging the demand
for EVs and acting on it. Its roots could be traced back to 2001, when the Mahindra Reva, one of the world’s
first EVs, was introduced, selling in global markets such as Germany, the UK, and France. With the
Mahindra eVerito, Mahindra e2o plus, Mahindra eSupro, Mahindra Treo, and Mahindra e-Alfa mini, the
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firm entered the Indian EV market.41

Kia Corporation

Kia, a subsidiary of the Hyundai Group of South Korea, had been successful through its limited product
offering in the Indian market. It planned to deliver 200 Kia EV6 units to customers in India by the end of
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2022. Kia focused on its brand of “luxury and sporty” cars. The figure was already double the company’s
target of 100 units. As part of its EV road map, Kia also planned to launch its India-centric EV by 2025.42

Other competitors

At that time, with limited infrastructure and developing policies, the option of buying an electric car was
limited. The price point of existing EVs in India ranged between ₹1.1 million and ₹2.4 million. Other EVs
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in India were sold at a premium price. Since it was a new technology and India was a lucrative market,
foreign companies primarily occupied this space (see Exhibit 3).43 BYD would face challenges regarding
pricing strategy because its competitors’ prices were lower. BYD could also potentially face indirect
competition from other petrol, diesel, compressed natural gas, and hybrid cars.

The Hyundai Tucson, specifically the Platinum 2.0 diesel AT trim, was the Atto 3’s main segment rival.
Both cars had features like leatherette upholstery, climate control, a touchscreen infotainment system,
power-adjustable front seats, etc. Its diesel variant was priced just below the Atto 3 at ₹2.77–3.45 million.44
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The Jeep Compass also offered its diesel variant at a similar price to the Atto 3 but beat it when it came to
mileage. With the Compass’s 60-litre capacity and claimed mileage of 17.1 km per litre (kmpl), it had the
ability to reach a range of 1,026 km when the Atto 3’s range was only 521 km. Only Škoda Auto s.a. offered
a diesel sedan car in a segment full of SUVs. Its Octavia model offered a mileage of 15.8 kmpl. There were
other competitors with diesel models at the same price point, such as the Kia Carnival Prestige 7 STR and
MG Gloster Super 7 STR 2WD.45

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MANUFACTURING POLICIES FROM THE INDIAN GOVERNMENT

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The Indian government had introduced policy measures to promote and increase the adoption of hybrid and
electric cars to reduce air pollution. It launched the Faster Adoption and Manufacturing of (Hybrid &) Electric
Vehicles (FAME) scheme in 2015. The budget for FAME-II was $1.3 billion, focused on supporting 0.5
million three-wheeler and 1 million two-wheeler EVs along with 55,000 passenger EVs and 7,000 electric

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buses. In the 2022–2023 Union Budget of India, the government extended the scheme to 2024.46

The government also introduced the Production Linked Incentive for Advanced Chemistry Cell Battery
Storage (PLI-ACC) scheme with plans to upgrade battery charging and manufacturing infrastructure in the
country. In the Union Budget, it was announced that ₹181 billion would be distributed over a period of five
years to beneficiaries once manufacturing facilities were operational.47

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NITI Aayog also pitched in with a draft battery-swapping policy on April 22, 2022, which would continue
until the end of March 2025. It was targeted at developing widespread charging facilities across the country,
a prerequisite for EV adoption. The policy was implemented in metropolitan cities with a population of
over 4 million over a period of two years from its launch.48

Other policies included a tax exemption of up to ₹150,000 under income tax section 80EEB when buying
an EV (2W or 4W) under finance.49 Customs duty on nickel ore (a critical element of lithium–ion batteries)
was whittled down from 5 per cent to zero, as was the country-wide road tax.50
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While the government was working hard to smooth the process of EV adoption across the country, some
significant challenges still needed to be addressed. It was crucial to provide variety to customers to drive EV
adoption. Also, as the cars were being marketed as eco-friendly and the EVs were being projected as the future
of automobile sector, India needed to shift toward more renewable sources of energy; otherwise, it would
defeat the purpose, and EVs might not get the required traction. The continuous supply of power to various
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charging stations and homes was still to be achieved in India, which was an essential prerequisite.51

Challenges for BYD in India

Post COVID-19, Chinese carmakers struggled to establish manufacturing bases in India due to the
government‘s extra screening of investments from the neighbouring country. The Indian government had
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become wary of Chinese investments and had implemented strict regulations to ensure that they were not a
threat to national security. For example, in 2022, these regulations had resulted in Chinese carmaker Great
Wall Motor dropping plans to invest $1 billion in India.52

Relations between India and China had deteriorated due to heightened tensions and skirmishes at the Sino-
Indian border. As a result, investments from China came in under the radar, and the Indian government was
watching closely.53 India’s resilience in the face of tough competition from China had made authorities
mandate that all foreign direct investment applications from bordering countries would have to go through
a certain approval process. The Indian government was keen to ensure that investments were not a threat to
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national security and that they would benefit the country’s economy.54

The Indian government’s cautious approach to Chinese investments had impacted several Chinese vehicle
makers. Some of them had faced delays in obtaining the necessary approvals, while others had to put their
plans on hold. The Indian government had also imposed stricter regulations on Chinese companies
operating in India, including increased scrutiny of their operations and investments.55

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With its local manufacturing push, India was chasing a dream of becoming the world’s factory floor. The

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government had implemented various policies to promote local manufacturing, including the Atmanirbhar Bharat
initiative, which aimed to encourage local firms to manufacture products in India by offering various incentives.56

Several foreign companies were also looking to enter the Indian automobile market, as its future looked
very promising. With an increase in disposable income and the introduction of EVs, it was possible that

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firms such as MG Motor India Pvt (the local unit of China's SAIC Motor Corp.), Renault SA, Nissan Motor
Co., and Volkswagen AG might finally get a better foothold in the country.57

ELECTRIC VEHICLES: MOVING FORWARD IN INDIA

The Indian EV market would likely experience robust growth if the right kind of EV ecosystem were

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developed. The development of infrastructure and formulation of enabling policies to support greater EV
adoption would help the sector. Several companies (like Tata Motors, Hyundai, and Mahindra & Mahindra)
jumped into the market with their own cars. BYD’s entry with just 15,000 units seemed like a pilot test to
understand the Indian market while saving money by utilizing its Chennai plant for vehicle assembly. BYD
needed to address the challenges posed by a price-sensitive market as well as by its direct and indirect
competitors. Lured by the size of the Indian automobile market, several foreign companies could soon enter
the market. With several factors such as competition, image, infrastructure, and investment playing a role
in the Indian market, BYD must strategize regarding its dealership network targets. The company needed
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to weigh several factors to determine whether it was viable to enter the Indian market or if it should focus
on some other, more friendly and accepting country. If India was a viable target for BYD, how should it set
about achieving its target of selling 15,000 units from its Chennai plant?
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EXHIBIT 1: PASSENGER CAR MARKET SHARE ACROSS INDIA BY BRAND (2022)

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Maruti Suzuki 42.75%

Hyundai 16.24%
Pessenger car companies in India

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Mahindra 6.86%

Kia 5.71%

Toyota 4.05%

Renault 3.08%

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Honda 2.86%

Volkswagen 1.87%

MG 1.30%

Nissan 1.24%

Ford 0.78%
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Mercedes-Benz 0.40%

Fiat 0.39%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%
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Market share

Source: Shangliao Sun, “Passenger Car Market Share India 2022, by Vendor,” Statista, March 29, 2023, https://www.statista.com/
statistics/316850/indian-passenger-car-market-share/.
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EXHIBIT 2: ELECTRIC VEHICLE SALES TREND IN INDIA (2020–2021)

Do
60,000

50,000
No
40,000

30,000
tC
20,000

Electric vehicle sales

10,000
op
0
January February March April May June July August September October November December
2021 16,889 20,598 27,815 15,117 3,662 12,534 28,112 30,931 36,370 41,488 44,775 50,899
2020 16,516 16,337 14,225 901 1,327 6,387 7,767 8,355 10,838 11,220 13,224 15,510

Month

copyright. Permissions@hbsp.harvard.edu or 617.783.7860

yo
Note: Table numbers refer to exact units sold.
Source: “India’s Electric Vehicle Sales Trend for 2021,” EV Reporter, January 11, 2022, https://evreporter.com/ev-sales-trend-in-india-in-2021/.
rP
os
t

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 Page 11 W32514

t
EXHIBIT 3: ELECTRIC VEHICLES AND PREMIUM CAR PRICE COMPARISON (INDIA)

os
(A): Price of electric vehicles in similar price point with BYD Atto 3 in India (October 2022)

Vehicle model Price (in US$)

BYD Atto 3 $41,500

rP
Tata Nixon EV $18,200–$21,400
Tata Tigor EV $15,300–$16,500
Hyundai Kona EV $29,100–$29,400
Mahindra eVerito $14,000–$14,500
Mahindra e20 plus $9,200–$14,100
Kia EV6 $73,400–$79,500

yo
(B): Price of premium electric vehicles in India (October 2022)

Vehicle model Price (in US$)

BMW i4 $85,500
Jaguar I-Pace $132,000
Mercedes-Benz EQS $189,600
op
Porsche Taycan $187,180
Audi e-tron GT $205,500
MINI Cooper SE $62,300
Mercedes-Benz AMG EQS $299,700
Porsche Taycan Cross Turismo $212,800
tC

BMW iX $141,900
Mercedes-Benz EQC $121,700
Audi e-tron $124,780
Audi e-tron Sportback $146,800

Source: Created by case authors based on data from “Electric Cars Bringing Revolution to India,” CarDekho, accessed
December 1, 2022, https://www.cardekho.com/electric-cars.
No
Do

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ENDNOTES

os
1
This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives
presented in this case are not necessarily those of BYD Auto Co., Ltd., or any of its employees.
2
Aditi Shah, “BYD Enters India’s Passenger Car Market Amid Global Push,” International Business Times, October 11, 2022,
https://www.ibtimes.com/byd-enters-indias-passenger-car-market-amid-global-push-3622611.
3
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indiatimes.com/auto/electric-cars/chinas-byd-to-take-on-tesla-in-luxury-ev-market-details/articleshow/98078276.cms.

rP
4
All dollar amounts are in US$ unless otherwise stated.
5
“BYD to Open 53 Dealerships by the End of 2023,” BW Auto World, November 19, 2022, http://bwautoworld.business
world.in/article/BYD-To-Open-53-Dealerships-By-The-End-Of-2023-/19-11-2022-454765.
6
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7
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8
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Factors,” chap. 19 in Innovation, Economic Development, and Intellectual Property in India and China, (Singapore: Springer

yo
Nature, 2019), 415–438, https doi.org/10.1007/978-981-13-8102-7_19.
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851c250b8a08a5/Indian-Passenger-Vehicle-Industry-Strategic-Analysis-with-Focus-on-the-Big-Four-
op
Firms.pdf?origin=publication_detail.
12
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14
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15
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16
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tC

17
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19
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20
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No

21
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22
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24
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25
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2016, https://www.greencarreports.com/news/1101883_who-sold-the-most-plug-in-electric-cars-in-2015-its-not-tesla-or-nissan.
26
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Do

25, 2017, https://evobsession.com/china-electric-car-sales-byd-wins-2016-geely-emgrand-ev-wins-december/.

27
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car-news/new-cars/chinese-firm-byd-begin-european-expansion-norway.
28
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https://www.bangkokpost.com/business/2364241/rever-allots-b3bn-to-nurture-byd-venture.
29
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news/byd-india-inaugurates-a-new-showroom-in-gurugram/.
30
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companies/news/byd-launches-premium-electric-vehicle-in-india-promises-more-11635758120581.html.

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 Page 13 W32514

t
os
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32
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rP
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35
₹ = INR = Indian rupee; ₹1 = US$0.012 as of October 1, 2022.
36
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37
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yo
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39
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40
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41
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tC

47
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