OLECTRA

Jan 29 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• DEC-QUARTER CONSOL NET PROFIT 463.3 MILLION RUPEES

• DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 5.15 BILLION RUPEES

Source text: [ID:]

Further company coverage: OLEC.NS

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Nov 26 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• ISSUES IRREVOCABLE UNDERTAKING WITH INDEMNIFICATION IN FAVOUR OF REC, WITH EVEY TRANS

• INDEMNIFICATION FOR LOC FACILITY UP TO 25 BILLION RUPEES TO CO BY LENDER

Source text: ID:nBSE79fHXl

Further company coverage: OLEC.NS

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Oct 8 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• CLARIFIES ON REPORT CO EMERGES LOWEST BIDDER FOR SUPPLY OF 327 ELECTRIC BUSES TO H P GOVERNMENT

• HRTC YET TO DECLARE L-1 BIDDER, FURTHER DISCUSSION TO NEGOTIATIONS CANNOT START

Further company coverage: OLEC.NS

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** JBM Auto JBMA.NS up 5.5% and Olectra Greentech OLEC.NS gains 3%

** Stocks among top small-cap .NIFSMCP100 gainers

** India govt approves scheme to spend 109 bln rupees ($1.3 bln) on incentives for EV adoption

** JBMA shares up 39% YTD, while OLEC up about 23% YTD vs 27% gains in small-cap index

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Aug 19 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• CO, EVEY TRANS FURTHER ACQUIRED ADDITIONAL SHARES IN EVEY TRANS (MSR)

• COST OF ACQUISITION AT 5 MILLION RUPEES

Source text for Eikon: ID:nBSEbbk374

Further company coverage: OLEC.NS

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** Shares of Olectra Greentech OLEC.NS jumps 12.2%

** Electric bus maker reports ~33% surge in Q1 profit, while rev jumped 45%

** Stock is the top gainer on small-cap index .NIFSMCP100, which is down 0.2%

** OLEC has gained about 28% YTD, outpacing the roughly 22% gain in the small-cap index

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Aug 12 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• RE-APPOINTS VENKATESWARA PRADEEP KARUMURU AS MD

• JUNE-QUARTER CONSOL NET PAT 242.5 MILLION RUPEES

• JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 3.14 BILLION RUPEES

Further company coverage: OLEC.NS

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Repeats story published on July 19 with no changes to text

By Bharath Rajeswaran

BENGALURU, July 19 (Reuters) - India unveils its budget on July 23 in the first major policy announcement of Prime Minister Narendra Modi's third five-year term, which could usher in changes to economic priorities.

After a shock election result saw Modi's party returned to power relying on allies, the government is expected to boost consumption in Asia's third-largest economy by lowering personal taxes or increasing spending on consumer-focused areas.

While that could benefit consumer goods makers, real estate and housing finance firms as well as infrastructure and auto companies, some sectors could also stand to lose, said brokerages.

Here are some of their winners and losers.

RURAL-LINKED SECTORS

The government is expected to allocate more funds for rural schemes to stimulate consumption, aiding consumer goods makers like Hindustan Unilever HLL.NS and two-wheeler makers like TVS Motor TVSM.NS and Hero MotoCorp HROM.NS, according to Citi.

A less than 5%-7% increase in tobacco taxes could be a positive for ITC ITC.NS, the country's largest cigarette maker, according to Jefferies.

REAL ESTATE

The government is likely to allocate more funds for affordable housing, benefitting developers such as Macrotech Developers MACE.NS and Sunteck Realty SUNT.NS, Citi said.

Moreover, the introduction of an interest subsidy scheme for urban housing would boost financiers like Aavas Financiers AVAS.NS and Home First Finance HOME.NS, said Jefferies.

AUTOMAKERS

India doled out subsidies worth 115 billion rupees ($1.38 billion) over five years to drive the adoption of electric vehicles (EVs) and Macquarie expects the government to retain both the quantum and tenure in its latest scheme.

That could benefit Tata Motors TAMO.NS, India's top e-car maker, as well as IPO-bound e-scooter maker Ola Electric and e-bus makers Olectra Greentech OLEC.NS and JBM Auto JBMA.NS.

Conversely, lesser-than-expected EV subsidies could benefit Maruti Suzuki MRTI.NS, India's highest-selling car maker and one that has chosen to make hybrid cars over pure EVs.

MANUFACTURING

The push on production-linked incentive schemes, which incentivises local manufacturing and creates jobs, is expected to continue, according to HSBC.

That will help manufacturers of technology hardware, telecom equipment, electronics and medical devices among others, like Dixon Technologies DIXO.NS, Ideaforge Technology IDEF.NS, Biocon BION.NS.

Capital goods companies like Larsen & Toubro LART.NS and infrastructure firms could benefit from the likely rise in capital expenditure in the budget, according to Jefferies.

TRADING

Any change in capital gains tax -- either by raising the holding period or tax rate -- could be a dampener for equities, Morgan Stanley said, though it says such moves are unlikely.

But, if enacted, they would increase the tax burden on equity and mutual fund investors, eroding the tax advantage they enjoy over investors in other asset classes.

It could also lead to lower trading volumes, weighing on brokerages Motilal Oswal MOFS.NS, ICICI Securities ICCI.NS, Angel One ANGO.NS, 5 Paisa PAIS.NS among others.

The country's mutual fund association has petitioned that mutual fund units be exempted from long-term capital gains tax.

The government and regulators also want to rein derivatives trading -- which has largely powered the stock market's rally since the COVID-19 pandemic -- calling it risky and speculative.

Any move to do so, such as through higher taxes, will not only weigh on the market but also reduce trading volumes and in turn, affect brokerages and trading platforms, Jefferies said.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)

(([email protected]; +91 9769003463;))

By Bharath Rajeswaran

BENGALURU, July 19 (Reuters) - India unveils its budget on July 23 in the first major policy announcement of Prime Minister Narendra Modi's third five-year term, which could usher in changes to economic priorities.

After a shock election result saw Modi's party returned to power relying on allies, the government is expected to boost consumption in Asia's third-largest economy by lowering personal taxes or increasing spending on consumer-focused areas.

While that could benefit consumer goods makers, real estate and housing finance firms as well as infrastructure and auto companies, some sectors could also stand to lose, said brokerages.

Here are some of their winners and losers.

RURAL-LINKED SECTORS

The government is expected to allocate more funds for rural schemes to stimulate consumption, aiding consumer goods makers like Hindustan Unilever HLL.NS and two-wheeler makers like TVS Motor TVSM.NS and Hero MotoCorp HROM.NS, according to Citi.

A less than 5%-7% increase in tobacco taxes could be a positive for ITC ITC.NS, the country's largest cigarette maker, according to Jefferies.

REAL ESTATE

The government is likely to allocate more funds for affordable housing, benefitting developers such as Macrotech Developers MACE.NS and Sunteck Realty SUNT.NS, Citi said.

Moreover, the introduction of an interest subsidy scheme for urban housing would boost financiers like Aavas Financiers AVAS.NS and Home First Finance HOME.NS, said Jefferies.

AUTOMAKERS

India doled out subsidies worth 115 billion rupees ($1.38 billion) over five years to drive the adoption of electric vehicles (EVs) and Macquarie expects the government to retain both the quantum and tenure in its latest scheme.

That could benefit Tata Motors TAMO.NS, India's top e-car maker, as well as IPO-bound e-scooter maker Ola Electric and e-bus makers Olectra Greentech OLEC.NS and JBM Auto JBMA.NS.

Conversely, lesser-than-expected EV subsidies could benefit Maruti Suzuki MRTI.NS, India's highest-selling car maker and one that has chosen to make hybrid cars over pure EVs.

MANUFACTURING

The push on production-linked incentive schemes, which incentivises local manufacturing and creates jobs, is expected to continue, according to HSBC.

That will help manufacturers of technology hardware, telecom equipment, electronics and medical devices among others, like Dixon Technologies DIXO.NS, Ideaforge Technology IDEF.NS, Biocon BION.NS.

Capital goods companies like Larsen & Toubro LART.NS and infrastructure firms could benefit from the likely rise in capital expenditure in the budget, according to Jefferies.

TRADING

Any change in capital gains tax -- either by raising the holding period or tax rate -- could be a dampener for equities, Morgan Stanley said, though it says such moves are unlikely.

But, if enacted, they would increase the tax burden on equity and mutual fund investors, eroding the tax advantage they enjoy over investors in other asset classes.

It could also lead to lower trading volumes, weighing on brokerages Motilal Oswal MOFS.NS, ICICI Securities ICCI.NS, Angel One ANGO.NS, 5 Paisa PAIS.NS among others.

The country's mutual fund association has petitioned that mutual fund units be exempted from long-term capital gains tax.

The government and regulators also want to rein derivatives trading -- which has largely powered the stock market's rally since the COVID-19 pandemic -- calling it risky and speculative.

Any move to do so, such as through higher taxes, will not only weigh on the market but also reduce trading volumes and in turn, affect brokerages and trading platforms, Jefferies said.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)

(([email protected]; +91 9769003463;))

** Shares of Olectra Greentech OLEC.NS fall as much as 12% to 1,591.65 rupees; last down 4%

** The electric bus manufacturer reported a 49.2% YoY fall in its March-qtr profit, revenue from operations down 23.2%

** OLEC eyes third straight weekly loss

** More than 2.2 mln shares change hands by 12:47 p.m. IST, 1.6x the 30-day avg

** Including session's move, stock is up ~29% YTD

(Reporting by Navamya Ganesh Acharya in Bengaluru)

(([email protected]; +91 8805175330 ;))

April 25 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• MARCH-QUARTER CONSOL NET PROFIT 137.1 MILLION RUPEES VERSUS PROFIT 270.1 MILLION RUPEES

• MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 2.89 BILLION RUPEES VERSUS 3.76 BILLION RUPEES

• DIVIDEND OF 4 RUPEES PER SHARE

Source text for Eikon: ID:nBSE7lrYL3

Further company coverage: OLEC.NS

(([email protected];))

March 19 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• RECEIVED A LETTER OF AWARD

• ORDER WORTH 151.4 MILLION RUPEES

• LOA FROM ASSAM STATE TRANSPORT CORPORATION FOR SUPPLY OF 10 ELECTRIC BUSES ON OUTRIGHT BASIS

Source text for Eikon: ID:nBSE3Jhj3k

Further company coverage: OLEC.NS

(([email protected];;))

** Shares of electric bus maker Olectra Greentech OLEC.NS rise 7.4% to a record high of 2,214.95 rupees

** OLEC says it got order worth 40 bln rupees ($482.7 mln) from Brihan Mumbai Electric Supply & Transport Undertaking

** Order to supply 2,400 electric buses expected to be delivered over 18 months

** More than 109,200 shares trade in four block deals in price range of 2,078.10-2,203 rupees per share - LSEG data

** Stock up 64% YTD, after a 172.1% climb in 2023

($1 = 82.8620 Indian rupees)

(Reporting by Rama Venkat in Bengaluru)

(([email protected]; https://twitter.com/ramavenkat0607;))

** Electric bus makers Tata Motors TAMO.NS, JBM Auto JBMA.NS, Olectra Greentech OLEC.NS, and Ashok Leyland ASOK.NS rise 0.3%-5%

** Gains come after Finance Minister Nirmala Sitharaman says in her budget speech that the government will encourage EV adoption in public transport

** Govt plans to expand EV ecosystem by supporting manufacturing and charging infrastructure

** TAMO, JBMA and OLEC up between 13% and 35% YTD, while ASOK down 3.8%

(Reporting by Rama Venkat in Bengaluru)

(([email protected]; https://twitter.com/ramavenkat0607;))

** Shares of Olectra Greentech OLEC.NS rise as much as 5.9% to 1,798.55 rupees

** Electric bus maker reported near 90% rise in consolidated net profit for the Dec-qtr; rev rose 33.4%

** Stock has been trading above its 200-day moving avg since March

** OLEC on track for a third consecutive monthly gain, if trend holds; up 30.9% for the month so far

** Stock rose 172.1% in 2023

(Reporting by Navamya Ganesh Acharya in Bengaluru)

(([email protected]; +91 8805175330 ;))

** Shares of JBM Auto JBMA.NS, Olectra Greentech OLEC.NS, Tata Motors TAMO.NS and Ashok Leyland ASOK.NS rise between 0.3%-3%

** Indian government plans to set up funds with an outlay of up to 300 bln rupees ($3.61 bln) to boost electric bus mobility- CNBC-TV 18 reports

** India aims to deploy 50,000 e-buses over next 4-5 years at ~$12 bln cost

** Olectra, Tata Motors up ~3% and ~0.8% to new record highs

** Analysts' average rating on TAMO and ASOK are equivalent of "buy;" JBMA and OLEC are not yet rated - LSEG data

** Median PTs on TAMO and ASOK at 3.6% discount and ~14% premium to last close, respectively

** With YTD gains of 184%, JBMA top performer among e-bus makers; ASOK's yearly gains of 26% among smallest in Nifty Auto index .NIFTYAUTO, which is up 48%

($1 = 83.0240 Indian rupees)

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

** Shares of electric bus makers Tata Motors TAMO.NS, Olectra Greentech OLEC.NS, JBM Auto JBMA.NS and Ashok Leyland ASOK.NS rise between 2% and 8.7%

** Indian govt plans to replace 800,000 diesel buses with e-buses over next 7 years - Economic Times report, citing govt sources

** Ministry of Heavy Industries, abovementioned cos did not immediately respond to Reuters' request for comment

** JBMA up 2%, ASOK – which makes e-buses via its unit Switch – jumps 4%; TAMO surges 6.5% to record high, OLEC soars 8.7%

** India currently aims to deploy 50,000 e-buses over next 4-5 yrs at ~$12 bln cost

** With YTD gains of 184%, JBMA top performer among e-bus makers; ASOK's yearly gains of 26% among smallest in Nifty Auto index .NIFTYAUTO, which is up 48%

(Reporting by Nandan Mandayam in Bengaluru)

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Dec 18 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• NCLT, HYDERABAD DISMISSES PETITION FILED BY CO AGAINST M.L.R. MOTORS FOR RECOVERY OF 100 MILLION RUPEES

Further company coverage: OLEC.NS

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** Shares of electric bus maker Olectra Greentech OLEC.NS up as much as 3.11% to 1,272 rupees in early trade

** Stock hits highest since Nov. 22

** OLEC received order worth 628 million rupees ($7.5 million) for supply of 40 electric buses

** Stock is trading above its 50-, 100-, and 200-day simple moving averages

** Stock last up 2.2%, extending YTD gains to over 140%

($1 = 83.3375 Indian rupees)

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

Dec 7 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• BAGS ORDER FOR SUPPLY OF 40 ELECTRIC BUSES

• ORDER WORTH 628 MILLION RUPEES

Source text for Eikon: ID:nBSEc45Kcf

Further company coverage: OLEC.NS

(([email protected];))

** Shares of electric bus maker Olectra Greentech OLEC.NS rise as much as 6.7% to 1,276.65 rupees, highest since Sept. 18

** Stock sees busiest trading volumes since mid-Sept

** Stock also marks sharpest intraday pct rise since Oct. 27

** OLEC up 156% so far this year, propelled by several EV bus orders including a $1.2 bln contract in July; Nifty Auto index .NIFTYAUTO up 33% in comparison

** Reason for stock move on Monday was not immediately clear

(Reporting by Chris Thomas in Bengaluru)

(([email protected]; +91-80-6749-8695; Reuters Messaging: [email protected]))

** Shares of Olectra Greentech OLEC.NS up about 2%

** Session's trading range above stock's 50-day simple moving avg for first time since early Oct

** Electric bus maker says consolidated net profit for the Sept-qtr more than doubled, as rev surged 73%

** Trading vol at mid-day is about 1.7x the 30-day daily avg

** Stock up 5.5% so far in Nov, after two months of declines; still stock has surged 143% YTD

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

NEW DELHI, Sept 20 (Reuters) - The United States and India will collaborate on a project to deploy 10,000 made-in-India electric buses in Indian cities, the U.S. embassy said in a statement on Wednesday.

A key component of the project will be a new payment security mechanism that will "accelerate new and more sustainable investments by lowering financial risks," the embassy said.

"The partnership announced today will mobilize financing for a fleet of 10,000 electric buses throughout India, expanding options for electric public transportation in India, creating cleaner cities and healthier communities," U.S. Ambassador to India Eric Garcetti said.

(Reporting by Shivam Patel; editing by Christina Fincher)

(([email protected];))

Olectra Greentech Ltd OLEC.NS:

• OLECTRA GREENTECH LTD- SUBSCRIPTION OF 34% STAKE IN EVEY TRANS

Source text for Eikon: ID:nBSE3vvK0H

Further company coverage: OLEC.NS

** Shares of electric bus makers Tata Motors TAMO.NS, Olectra Greentech OLEC.NS and JBM Auto JBMA.NS close between 1.9% and 10.1% higher on Wednesday

** India cabinet approves 576.13 billion rupees ($6.92 billion) subsidy scheme for electric bus production

** Of this, federal govt to provide subsidy up to 200 billion rupees

** Govt eyes deployment of 10,000 electric buses across 169 cities through scheme

** JBMA shares close up 10.1%, rival OLEC finishes 8.8% higher, while TAMO – among top gainers on the Nifty 50 index .NSEI ends up 1.9%

** JBMA leads gains among e-bus makers with 180% YTD rise compared to OLEC's 147% YTD rise and TAMO's ~60% rise

($1 = 83.2208 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

Aug 7 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• OLECTRA GREENTECH LTD JUNE-QUARTER CONSOL NET PROFIT 180.8 MILLION RUPEES VERSUS 166.3 MILLION RUPEES

• OLECTRA GREENTECH LTD JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 2.16 BILLION RUPEES VERSUS 2.81 BILLION RUPEES

Source text for Eikon: ID:nBSE9ST6qy

Further company coverage: OLEC.NS

(([email protected];))

By Sarita Chaganti Singh

NEW DELHI, July 28 (Reuters) - China's BYD 002594.SZ has told its India joint-venture partner it would shelve plans for a new $1-billion investment to build electric cars after its investment proposal faced scrutiny from New Delhi, two people with knowledge of the discussions said.

BYD and its partner, privately held Megha Engineering and Infrastructures submitted a proposal to the Indian government in April to jointly build electric cars in India, Reuters reported earlier this month.

But in the initial review, officials from three Indian ministries, including finance and external affairs, raised what two Indian officials described as security concerns about investment from the Chinese company and signalled opposition.

BYD executives told Megha Engineering last week that the battery and EV maker wanted to drop pursuit of the investment, according to the two people with knowledge of that exchange.

It was not immediately clear whether BYD could have second-thoughts, and as of Thursday BYD had not formally withdrawn the investment proposal from government review, the two officials with knowledge of the review said.

BYD, China's largest EV maker, declined to comment on the status of its investment proposal and whether it would pull the plan to produce electric cars in India.

In a statement to Reuters, the company said it has had a presence in India for 16 years, selling both passenger cars and electric-drive buses.

India's finance, external affairs and home ministry did not reply to an email seeking comment. Megha Engineering did not respond to request to comment.

During a meeting last week, Hyderabad-based Megha Engineering urged BYD to wait for more clarity on the situation before moving to drop the electric cars manufacturing plan, according to the two people with knowledge of the discussion.

BYD had understood its investment proposal would be politically charged because of the scrutiny of Chinese investment in India and had attempted to head off concerns, the two people with knowledge of its planning said.

For instance, the proposal said voice-activated commands for apps would be available in Indian languages in BYD electric cars built in India and that all data from the vehicles would be housed in India, one of the people said.

BYD had proposed starting production in India by 2025, the people familiar with the plan said.

India began subjecting investment from China to closer scrutiny in 2020 amid a series of border clashes between the two countries.

China's Great Wall Motor 01633.SS shelved its plans to invest $1 billion after failing to get clearances from the Indian government.

A final decision on whether to approve BYD's investment proposal would be taken by Indian ministries of trade and heavy industries.

BYD, the world's largest producer of EVs and plug-in hybrid vehicles, entered the Indian market in 2007 producing batteries and components for mobile phone makers.

In 2013 it started building electric buses in India with Megha Engineering, under a joint venture company called Olectra Greentech OLEC.NS.

BYD, which has already invested over $200 million in India, markets the Atto 3 electric SUV and the e6 EV to corporate fleets and plans to launch sales of its Seal electric sedan later this year.

BYD has sold about 1,950 cars in India since starting sales in 2022, according to government registration data.

India's EV market is small but growing with domestic automaker Tata Motors TAMO.NS dominating sales. Electric models made up less than 2% of total car sales in 2022 but the government wants to grow this to 30% by 2030.

(Additional reporting by Aditi Shah in New Delhi and Zoey Zhang in Shanghai; Editing by Kevin Krolicki & Simon Cameron-Moore)

(([email protected]; +91 99109 33884; Reuters Messaging: twitter: @aftabahmed00))

** Shares of Olectra Greentech Ltd OLEC.NS fall as much as 7.3% to 1182.20 rupees, their biggest intraday pct loss since Feb. 28

** India govt rejects Chinese automaker BYD's 600104.SS proposal to set up $1 billion factory in India in partnership with OLEC parent Megha Engineering and Infrastructure, Economic Times newspaper reported

** Electric bus maker's shares down for sixth straight session, where it has lost 11% at current levels

** If losses hold, stock set for longest losing run since Oct. 21

** Stock trims YTD gains to 146.7% vs rival JBM Auto's 166.7% rise

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

July 19 (Reuters) - Olectra Greentech Ltd OLEC.NS:

• AWARDS CONTRACT FOR CONSTRUCTION OF GREENFIELD EV MANUFACTURING FACILITY TO MEGHA ENGINEERING & INFRASTRUCTURES

• PROPOSED VALUE OF CONTRACT IS ABOUT 3.95 BILLION RUPEES

Source text for Eikon: ID:nBSE7QkFDY

Further company coverage: OLEC.NS

(([email protected];))

Adds details, context in paragraphs 12-17

By Sarita Chaganti Singh and Aditi Shah

NEW DELHI, July 14 (Reuters) - China's BYD Co 002594.SZ has submitted a $1 billion investment proposal to build electric cars and batteries in India in partnership with a local company, three people with direct knowledge of the plan told Reuters.

BYD and privately held Hyderabad-based Megha Engineering and Infrastructures have submitted a proposal to Indian regulators to form an EV joint venture, the people said, asking not to be named because the application is private.

The longer-term plan is to build a full line-up of BYD-brand electric cars in India from hatchbacks to luxury models, one of the three people said.

BYD, the world's largest producer of EVs and plug-in hybrid vehicles, did not immediately respond to a request for comment. The company previously said it planned to set up manufacturing in India, now the world's third-largest car market.

India's commerce and heavy industries ministries did not immediately reply to a request for comment.

BYD's push into India is part of its rapid global expansion to challenge Tesla TSLA.O, which still leads in sales of EVs alone. If the India investment is approved, it would give BYD a presence in all major global car markets with the exception of the United States.

Tesla has recently restarted talks with India's government after putting on hold plans to enter the market last year when it failed to secure lower tax duties on imported vehicles in talks with officials.

BYD has already invested $200 million in India where it sells the Atto 3 electric SUV and the e6 EV to corporate fleets, and plans to launch its Seal luxury electric sedan this year.

The total production capacity proposed by BYD was not immediately clear.

The maker of Blade batteries as well as finished EVs has plans to scale up to production of 100,000 EVs annually in India over a few years but would likely begin by shipping vehicles in parts for assembly in the country as it works to build up a supply chain, one of the sources said.

The investment proposal also includes a plan by BYD and Megha Engineering to set up charging stations in India and build research and development and training centres, the sources said.

The joint proposal comes amid stricter investment rules. Since 2020, India has tightened scrutiny of investments from neighbouring countries, including China.

Those controls forced China's Great Wall Motor 601633.SS to shelve a plan to invest $1 billion in the Indian market and pushed Chinese state-owned automaker SAIC's 600104.SS MG Motor unit to look for a local partner.

Shenzhen-based BYD entered the Indian market in 2007 producing batteries and components for mobile phone makers.

In 2013 it started building electric buses with Megha Engineering, under a joint venture company called Olectra Greentech OLEC.NS.

BYD, which stands for Build Your Dreams, sold a total of 1.86 million BEVs and plug-in hybrids in 2022. In India, EVs made up just over 1% of total car sales of 3.8 million in 2022 but the government wants to grow this to 30% by 2030.

In India, BYD will compete with domestic automaker Tata Motors TAMO.NS and Chinese rival MG Motor that currently dominate electric car sales.

(Reporting by Sarita Chaganti Singh and Aditi Shah in New Delhi; Additional reporting by Zoey Zhang in Shanghai and Shivangi Acharya in New Delhi; Editing by Kevin Krolicki and Jacqueline Wong)

(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))