The government has clarified that existing automakers will have the opportunity to take advantage of lower import duties outlined in India's new electric vehicle policy. As per a senior official, details on allowing existing automakers to make new investments for electric vehicle production will be included in guidelines currently being finalized.
The new policy aims to boost electric mobility in the country by offering concessions to companies willing to set up local manufacturing facilities. There were initial concerns that the conditions around investment amounts favored foreign newcomers over domestic brands already operating in India.
However, the official confirmed all automakers will be permitted to utilize provisions under the EV scheme. A second round of industry consultations is scheduled to gather further feedback on draft guidelines. This comes after Tesla participated in first round discussions regarding policy implementation.
While Tesla is yet to publicly declare localization plans for the Indian market, the automaker found success recently obtaining regulatory approval in China for its self-driving technology. The development provided a boost as Tesla seeks to further expand its overseas presence.
Separately, existing automakers will hope proposals accommodating established industry players help level the field of competition. Local manufacturers are monitoring guidelines to determine viability of electrification strategies under the new policy framework.
As India's automotive sector continues high growth, policies aim to accelerate e-mobility adoption while supporting both foreign and domestic investments in EV production. Updated norms could pave the way for more automakers, both new and familiar, to drive electric vehicles ‘Made in India'.
