The Centre adopted the e-vehicle policy, a step towards making India a destination for EV manufacture within the nation. The government’s action is intended to make it easier for major players, like as Tesla Inc., led by Elon Musk, to enter the nation with its new electric vehicle programme.
The Ministry of Commerce & Industry said in an official statement that businesses establishing e-vehicle manufacturing facilities would be permitted to import a restricted quantity of cars at a reduced customs duty. On the other hand, the strategy aims to draw investment from reputable international EV manufacturers and promote India as a location for EV manufacturing. The amount of tax waived on the whole quantity of EVs permitted for import would be capped at the investment or Rs 6,484 crore (the PLI programme incentive), whichever is less.
Government EV Policy
Global firms are taking notice of India’s rapidly expanding electric vehicle (EV) sector, which is predicted to reach one crore annual sales by 2030 and generate five crore direct and indirect jobs, according to the Economic Survey 2022–23. Nonetheless, industry estimates place the overall number of electric vehicle sales in India in 2022 at about 10 lakh units. With its EV portfolio that includes the Tiago EV, Tigor EV, and Nexon EV range, Tata Motors is the market leader in passenger electric vehicles in India.
The president of the Automotive Component Manufacturers Association (ACMA), Shradha Suri Marwah, praised the new EV policy and said it represents a major step forward in encouraging innovation and hastening the adoption of cutting-edge technology in India’s automotive industry. Additionally, Rao said that the programme establishes clear localization criteria through the verification of domestic value addition (DVA), using lessons from past FAME-II issues and providing OEMs with a more streamlined and transparent approach.
Raman Bhatia, the managing director and founder of Servotech Power Systems, stated that the policy will turn India into a global leader in EV manufacturing.
