MEIL in talks to assemble BYD's EVs in India as JV plan sputters

Megha Engineering and Infrastructures Ltd (MEIL) is in talks to assemble the Atto 3 and e6 electric cars from China’s BYD Auto Co. Ltd in India, two people aware of the development said, at a time its $1 billion investment plan with the electric vehicle (EV) giant has stalled

- Utpal Bhaskar

Hyderabad-based Megha is looking at contract-manufacturing the two models by assembling completely-knocked-down (CKD) kits, which attract a lower import duty than fully built cars. India levies 100% basic customs duty (BCD) on completely built-up units of EVs priced over $40,000 and 70% on those below $40,000. In comparison, semi-knocked-down and CKD kits attract a lower BCD of 35% and 15%, respectively. The plan is to start contract manufacturing around 25,000 units and scale it up to around 75,000 units for sale in India.

The new plans come as the duo’s $1 billion investment proposal submitted to the department for promotion of industry and internal trade (DPIIT) for an equal joint venture (JV) is yet to secure approval.

“Contract manufacturing will help Megha with the larger JV plan as it will help them with learning the technology and process. The investment proposal is alive and active," said one of the two people cited above, requesting anonymity.