March 15, 2024
2 mins read

India’s New E-Vehicle Policy Targets Global Manufacturers

Commerce Ministry on Friday said the policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers….reports Asian Lite News

 The Central government has approved a scheme to promote India as a manufacturing destination so that e-vehicles (EV) with the latest technology can be manufactured in the country.

Commerce Ministry on Friday said the policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers.

The policy fixes a minimum investment of Rs 4,150 crore (∼USD 500 million) for foreign companies who want to set up electric vehicle manufacturing facilities in India. The scheme which aims to attract investments from leading EV manufacturers, such as Elon Musk-led Tesla, does not fix any upper limit on the investments.

The scheme also stipulates a 3 years timeline for setting up manufacturing facilities in India and starting commercial production of EVs. It lays down that 50 per cent domestic value addition in manufacturing must be reached within 5 years at the maximum.

Companies setting up manufacturing facilities for EVs will be allowed limited imports of cars at lower custom duty as an incentive.

The highlights of the scheme are:

* Timeline for manufacturing: 3 years for setting up manufacturing facilities in India, and to start commercial production of e-vehicles, and reach 50 per cent domestic value addition (DVA) within 5 years at the maximum.

* Domestic value addition (DVA) during manufacturing: A localisation level of 25 per cent by the 3rd year and 50 per cent by the 5th year will have to be achieved.

* The customs duty of 15 per cent (as applicable to CKD units) would be applicable on the vehicle of minimum CIF value of USD 35,000 and above for a total period of 5 years subject to the manufacturer setting up manufacturing facilities in India within a 3-year period.

* The duty foregone on the total number of EV allowed for import would be limited to the investment made or 6484 cr (equal to incentive under PLI scheme) whichever is lower. A maximum of 40,000 EVs at the rate of not more than 8,000 per year would be permissible if the investment is of USD 800 Mn or more. The carryover of unutilised annual import limits would be permitted.

* The Investment commitment made by the company will have to be backed up by a bank guarantee in lieu of the custom duty forgone.

* The Bank guarantee will be invoked in case of non-achievement of DVA and minimum investment criteria defined under the scheme guidelines.

The Commerce Ministry said that the scheme is aimed at providing Indian consumers with access to the latest technology, boost the Make in India initiative, strengthen the EV ecosystem by promoting healthy competition among EV players leading to a high volume of production, economies of scale, lower cost of production, reduce imports of crude oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment.

ALSO READ: India Leads UN Push for Secure and Accessible AI

Previous Story

Lok Sabha 2024: Schedule Unveiling Tomorrow!

Next Story

Maharashtra Makes History, Owns Land in J&K

Latest from -Top News

Ukraine Opts Out of Saudi Talks

The US and Russian delegations are set to meet on Tuesday to discuss a possible solution to the Russia-Ukraine conflict…reports Asian Lite News Ukrainian President Volodymyr Zelensky said Monday that Kyiv would

Hezbollah to Israel: Leave Lebanon Fully

Israel had previously postponed its full withdrawal from Lebanon to February 18 after missing the initial deadline…reports Asian Lite News Hezbollah’s Naim Qassem has set a deadline, demanding Israel’s complete withdrawal from

Bangladesh Seeks Fresh Talks on Ganges Treaty

Even though India continues to bat for the normalisation of relations between the two neighbouring countries, the current regime in Dhaka has faced massive criticism for making groundless accusations…reports Asian Lite News

Uniting Global Artistry In Dubai’s Heart

Art events are no more about showcasing art, it is about connecting and collaborating, and bringing artists and collectors n an engaging manner … A special report by Soniya Kirpalani, Photographs/ Video:
Go toTop

Don't Miss

Indiaspora to host G20 Forum in Delhi

The three-day programme will feature an array of plenary and

EC launches ‘Know Your Candidate’ app for voters

The application has been made available for download on both