The Centre is planning to expand incentives to automakers building models at existing factories
The EV policy which is still being finalised, was originally designed to encourage Tesla to venture into India’s market
Other foreign automakers have shown interest in making EVs in India at existing and new factories
In an effort to boost electric vehicle production in India, the Centre is planning to expand incentives to automakers building models at existing factories, Reuters reported.
It is pertinent to note that the EV policy, which is still being finalised, was originally designed to encourage Tesla to venture into India’s market and manufacture vehicles locally.
As per the policy announced in Marchthe Centre put high cuts on import duties for the manufacturing companies setting up EV plants in India with a minimum investment of $500 Mn.
Meanwhile, other foreign automakers have shown interest in making EVs in India at existing as well as new factories, according to minutes of a meeting with India’s ministry of heavy industries that was seen by Reuters.
With the current ongoing changes, the government will now consider providing EV investments at existing factories with the condition of electric models to be built on a separate production line and meet the local sourcing criteria.
Additionally, these new changes to the policy are expected to bring EV investments from global giants like Toyota and Hyundai, a source told Reuters.
To maintain a fair chance for all the manufacturers, the government is also planning to set a minimum EV revenue target for any product line or plant to qualify for the scheme.
This comes at a time when the government is pushing all aspects including manufacturing, purchasing and consumption of EV vehicles in the country.
In September, the Ministry of Heavy Industries (MHI) notified the INR 10,900 Cr PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. This initiative aims to foster adoption of electric vehicles (EVs) by offering subsidies to manufacturers, shoring up charging infrastructure and spurring local EV manufacturing capabilities.
On the manufacturing end, the Centre is likely to have a phased manufacturing programme (PMP) to support local manufacturing of EV components. Under this, electric vehicle makers that source components locally will receive financial support under the scheme without any domestic value addition mandate.
Earlier this month, union commerce and industry minister Piyush Goyal urged industry players to ensure quick transition to electric mobility to achieve India’s goal of 100% electric vehicle nation.
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