New EV Policy: Today i.e. on March 15, The central government approved an EV policy to promote India as an EV manufacturing destination. With the new EV policy, the government emphasizes the domestic manufacturing of electric vehicles in the country. In a statement, the Ministry of Commerce and Industry mentioned that “The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers”.
New E-Vehicle Policy Details
The new EV policy states that a company wishing to set up an EV factory in India will require a minimum investment of 4150 Crore. The policy allows companies to take three years to establish or set up domestic manufacturing for electric vehicles. The companies setting up EV factories will need to source 25 per cent of manufacturing components from the country itself. The new EV policy cues the possibility of domestic manufacturing of Tesla cars in India.
EV companies that fulfil the eligibility criteria will be able to import 8000 EVs per year with a reduced import duty of 15% on vehicles costing USD 35,000 and more. Currently, the Indian government levies an import duty of up to 70% or 100 per cent according to the price of the car.
How the New EV Policy Will Supplement India’s EV Transition
According to the government, the new EV policy will improve the EV ecosystem and give access to advanced EV technologies. The government’s Made in India campaign will also receive a major push. Import duties on electric vehicles waived up to the annual PLI incentive of Rs. 6,484 crore or the entity’s investment, whichever is less. Overall, the new EV policy will fuel India’s EV transition as due to local manufacturing, the prices of electric vehicles will also go down.
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