India paves the path for Tesla’s entry with updated EV policy. Revised EV policy aims to position India as a hub for electric car manufacturing. Manufacturers establishing EV plants granted limited imports of vehicles at reduced duties
The government has sanctioned an e-vehicle policy aiming to bolster India’s standing as a manufacturing hub for electric vehicles, as per the Press Information Bureau (PIB).
Companies establishing manufacturing units for EVs will be permitted restricted imports of vehicles with reduced customs duties.
A minimum investment of ₹4150 crore ($500 million) is mandatory, with no ceiling on maximum investment.
PIB reports that achieving a 50% domestic value addition within five years is a requirement.
The government stipulates a 15% customs duty on knock-down EVs for vehicles valued at a minimum of $35,000.
The government has sanctioned a 15% customs duty for five years, contingent upon companies establishing manufacturing operations in India within a three-year timeframe.
The government indicates that a maximum of 40,000 EVs will be allowed at a lower import rate if the investment exceeds USD 800 million.
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