'The EV Market Is Hotting Up'

'I feel we need to do a little more work in India to make our brand and its excellent technology familiar among masses and only then should we start selling cars in these segments.'

BYD India, the Indian subsidiary of the Chinese automaker, would like to double its sales volumes annually starting in 2025, says Rajeev Chauhan, head of electric passenger vehicles (EV) business, in an interview with Deepak Patel/Business Standard in Gurugram.

To achieve this, the company plans to launch an electric sports utility vehicle (SUV), targeting either of the two extreme price segments -- Rs 20-25 lakh and Rs 40-50 lakh -- and is also considering a plug-in hybrid.

What kind of growth in sales volumes are you expecting this year?

Last year, we sold 2,500 EVs. We are the only company in India that sells just EVs and hence last year's number was a huge confidence builder.

Two-thirds of the current calendar year is over and we have sold about 2,000 cars till now (this year).

We would perhaps sell 3,500-4,000 units by the end of this year, hitting 30 per cent year-on-year growth.

In 2024, about 25 per cent of our sales came from Seal sedan and the remaining essentially from Atto 3, which is a mid-size SUV.

Which car segments would you like to target from here onwards?

We are evaluating two extremes. We are investigating if we should launch an SUV that is in the range of Rs 40-50 lakh or Rs 20-25 lakh.

Depending on what makes a stronger business case for us, we should take this decision by year-end.

Competition is hot in the Rs 15-25 lakh segment.

You are right. It is a dogfight there. Competition at the other end (Rs 40-50 lakh) is almost absent.

So, we have to think -- would we be able to engage in this dogfight or should we compromise on numbers and build a brand at the higher level (Rs 40-50 lakh segment)? This decision (on which car to launch) has to be based on good research.

It would be clear by year-end.

In the long term, do you want to position yourself as a premium carmaker in India?

We consider ourselves a premium brand.

The question is whether we should follow that or slide into the mass market segment.

I feel we need to do a little more work in India to make our brand and its excellent technology familiar among masses and only then should we start selling cars in these (mass-market) segments.

This could be the transition. However, the EV market is hotting up.

A lot of players (such as Maruti and Hyundai) are entering the market in the first and the second quarters of 2025.

So, perhaps, we could jump in the mass market segment right away.

Your sales touch points --dealerships and service workshops -- are present in the top 23 cities. Have you formed a plan to expand their numbers?

We have a robust plan. Currently, we have 27 dealerships and 20 workshops in 23 cities of India.

About 75 per cent of these touchpoints are in Tier-I cities while the rest are in Tier-II cities.

We plan to double the number of touchpoints in the next six-eight months and go to 40-45 cities.

This expansion would largely happen in Tier-II cities. That is how people will know of BYD.

You are doubling the number of dealerships. Will you be able to accordingly double your sales volumes too?

Absolutely. We have to match the pace. If we are doubling our network, our volumes growth should be 2.2 times in 2025.

We have not set any target for ourselves but we want to continue doubling our sales each year for a couple of years.

Are you planning a joint venture like MG (another Chinese carmaker that has joined hands with the Indian conglomerate JSW) to manufacture in India?

Some discussion is on. However, nothing has fructified.

EV sales have not been growing for the last three-four months in India. How do you see this?

The data for two-four months is not enough to declare that the EV market is going down.

We can look at the data for the first eight months of this year and observe EV sales have been growing in India.

Currently, the number of choices in the Indian car market is extremely limited.

You have plug-in hybrid cars (PHEV) in your global portfolio. Are you considering launching a PHEV in India?

It has not been decided. But we have a choice. We have a wide global PHEV portfolio.

Feature Presentation: Aslam Hunani/Rediff.com