New Delhi: The Centre on Friday announced that a scheme has been approved to promote India as a manufacturing destination so that electric vehicles (EV) with the latest technology can be manufactured in the country. “The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers”, an official statement said.
Attracting global players
– The policy mandates companies to invest a minimum of Rs 4,150 crore in the country and will allow them three years to set up local manufacturing for EVs with at least 25% of components sourced locally, potentially bolstering Tesla's market entry plans
– Companies that meet these requirements will be allowed to import 8,000 EVs a year at a lower import duty of 15 per cent on cars costing $35,000 and above.
The new policy mandates companies to invest a minimum of Rs 4,150 crore in the country and will allow them three years to set up local manufacturing for EVs with at least 25 per cent of the components sourced locally, potentially bolstering Tesla's market entry plans.
Companies that meet these requirements will be allowed to import 8,000 EVs a year at a lower import duty of 15 per cent on cars costing $35,000 and above. India levies a tax of 70 per cent or 100 per cent on imported cars depending on their value.
The move is expected to provide access to latest technology and enhance the EV ecosystem and support the Make in India initiative, the statement said. The duty waiver on EVs, which can be imported is capped at the annual PLI incentive (Rs 6,484 crore) or the investment made by the entity, whichever will be lower.
