In a fresh move to strengthen the electric vehicle (EV) sector in India, the Centre plans to extend incentives to automakers producing electric models at their existing factories. This decision is aimed at accelerating the country’s EV production while encouraging both local and global companies to invest more in the sector.
The new strategy is part of the government’s broader effort to foster a sustainable EV ecosystem in India.
EV Policy Aimed at Attracting Foreign Investment
The ongoing development of India’s EV policy has focused on attracting global automakers, including Tesla, to set up manufacturing operations in the country.
Initially, the policy was designed to lure Tesla to produce vehicles locally.
The Centre had already reduced import duties significantly in March to encourage manufacturers to set up EV plants with an investment commitment of at least $500 million.
These efforts are seen as a step towards making India a key player in the global electric vehicle market.
Expanding the Scope for EV Investments
Recent updates to the policy will now include provisions for automakers to build electric models at their existing production facilities.
However, these companies will need to meet certain conditions, such as building electric models on separate production lines and ensuring compliance with local sourcing criteria.
These changes are expected to attract investment from global giants like Toyota and Hyundai, further boosting India’s EV manufacturing capacity.
Minimum EV Revenue Target.
In order to ensure that the new policy benefits all manufacturers fairly, the government is considering the implementation of a minimum EV revenue target. This would allow any product line or plant to qualify for the incentives based on its contribution to the EV sector’s growth.
Such measures aim to balance the competition among domestic and international players while ensuring that India remains competitive in the global EV market.
Government Initiatives to Accelerate EV Adoption
In September, the Ministry of Heavy Industries (MHI) introduced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.
This initiative is focused on driving EV adoption through subsidies for manufacturers, developing charging infrastructure, and enhancing local EV manufacturing capabilities. more here – PM Modi Launches Rs 10,900 Crore E-Mobility Scheme
Alongside these efforts, the Centre plans to roll out a phased manufacturing program (PMP) to further support the local production of EV components, without requiring any specific domestic value addition.
Industry’s Role in India’s EV Future
At the same time, Union Commerce and Industry Minister Shri Piyush Goyal has urged industry players to speed up the transition to electric mobility. The government’s push aims to help India achieve its vision of becoming a 100% electric vehicle nation.
As the country gears up for this transformation, these initiatives are expected to play a crucial role in shaping the future of electric vehicles in India.
