Electric vehicle (EV) manufacturer, BYD Co, plans to invest $1 billion in India to collaborate with a local company to manufacture electric vehicles and batteries. 

The Chinese company, jointly with the privately held Hyderabad-based Megha Engineering and Infrastructures, submitted a proposal to Indian regulators to form an EV joint venture, Reuters reported.

The strategic vision behind the venture is to build a comprehensive line-up of BYD-brand EVs, spanning from hatchbacks to luxury models, in India. The proposal entails establishing charging stations across India and constructing research and development facilities and training centres.

In the beginning stages, the company expects to ship vehicle components for assembly within the country as it endeavours to establish a robust supply chain. The company would gradually increase production to 100,000 EVs annually in India over a few years.

Although there has yet to be a response from India’s Commerce and heavy industries ministry regarding the matter, if the proposal is approved, BYD could establish a significant presence in all major automotive markets worldwide. 

BYD is one of the leading EV and hybrid vehicle makers. The company previously said it intends to establish manufacturing facilities in India, now the third-largest automobile market in the world. 

BYD has already invested $200 million in India, offering the Atto 3 electric SUV and the e6 EV for corporate fleet sales. Additionally, the company intends to introduce its Seal luxury electric sedan later this year.