Global Carmakers Eye India for EV Manufacturing Push
ECONOMY & POLICY

Global Carmakers Eye India for EV Manufacturing Push

Several global automotive giants, including Mercedes Benz, Skoda-Volkswagen, Hyundai, and Kia, have expressed strong interest in manufacturing electric vehicles (EVs) in India under the Government’s recently detailed incentive scheme. Union Minister for Heavy Industries H. D. Kumaraswamy made the announcement on Monday during a press briefing.

This renewed enthusiasm follows the formal issuance of guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India,” first announced in March 2024. The application window for the scheme is set to open shortly, enabling eligible manufacturers to submit formal investment proposals.

Under the scheme, approved manufacturers will be permitted to import completely built units (CBUs) of electric four-wheelers with a minimum CIF (cost, insurance, and freight) value of USD 35,000 at a reduced customs duty of 15 per cent for a period of five years. Each approved applicant must commit to a minimum investment of Rs41.5 billion, with the total import duty benefit capped at the lower of Rs64.84 billion or the applicant's total investment.

Import quotas under the scheme will allow a maximum of 8,000 vehicles per year at the reduced duty rate, with provisions for carrying forward unused annual quotas.

While global manufacturers are keen to invest in setting up EV production lines in India, Tesla has declined to participate. According to Minister Kumaraswamy, the Elon Musk-led company has shown interest only in opening showrooms rather than manufacturing facilities in the country. “Tesla was involved in the initial stakeholder discussions but did not attend subsequent meetings,” the minister stated.

Tesla’s approach aligns with its earlier caution, as the company has raised concerns over import tariffs. Elon Musk had also postponed a planned visit to India in April 2024, citing scheduling conflicts. In contrast, his father, Errol Musk, arrived in India on 1 June for a personal and business visit, which included a stop at the Ayodhya Ram temple.

The Indian government hopes the scheme will position the country as a leading EV manufacturing destination, attract major foreign investment, and boost domestic employment while advancing the goals of the “Make in India” and green mobility initiatives.


Several global automotive giants, including Mercedes Benz, Skoda-Volkswagen, Hyundai, and Kia, have expressed strong interest in manufacturing electric vehicles (EVs) in India under the Government’s recently detailed incentive scheme. Union Minister for Heavy Industries H. D. Kumaraswamy made the announcement on Monday during a press briefing.This renewed enthusiasm follows the formal issuance of guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India,” first announced in March 2024. The application window for the scheme is set to open shortly, enabling eligible manufacturers to submit formal investment proposals.Under the scheme, approved manufacturers will be permitted to import completely built units (CBUs) of electric four-wheelers with a minimum CIF (cost, insurance, and freight) value of USD 35,000 at a reduced customs duty of 15 per cent for a period of five years. Each approved applicant must commit to a minimum investment of Rs41.5 billion, with the total import duty benefit capped at the lower of Rs64.84 billion or the applicant's total investment.Import quotas under the scheme will allow a maximum of 8,000 vehicles per year at the reduced duty rate, with provisions for carrying forward unused annual quotas.While global manufacturers are keen to invest in setting up EV production lines in India, Tesla has declined to participate. According to Minister Kumaraswamy, the Elon Musk-led company has shown interest only in opening showrooms rather than manufacturing facilities in the country. “Tesla was involved in the initial stakeholder discussions but did not attend subsequent meetings,” the minister stated.Tesla’s approach aligns with its earlier caution, as the company has raised concerns over import tariffs. Elon Musk had also postponed a planned visit to India in April 2024, citing scheduling conflicts. In contrast, his father, Errol Musk, arrived in India on 1 June for a personal and business visit, which included a stop at the Ayodhya Ram temple.The Indian government hopes the scheme will position the country as a leading EV manufacturing destination, attract major foreign investment, and boost domestic employment while advancing the goals of the “Make in India” and green mobility initiatives.

Next Story
Resources

Tata Power turns 5,000 kg plastic waste into green livelihood for women

Tata Power’s Anokha Dhaaga Smart Circularity programme has converted over 5,000 kilograms of single-use plastic waste into recycled fabric products like T-shirts, tote bags, and haversacks, generating over Rs 20 lakh in fair-trade earnings for women entrepreneurs. The initiative is active across six centres and aligns with the World Environment Day 2025 theme — End Plastic Pollution. The project began with a collection drive across Tata Power’s Trombay plant, housing colonies, and offices. In collaboration with ReCircle and sanitation workers ('Safai Saathis'), the waste was processed i..

Next Story
Infrastructure Transport

Adani Airports secures US$ 750 million from global lenders for growth

Adani Airports Holdings (AAHL), a subsidiary of Adani Enterprises and India’s largest private airport operator, has raised US$ 750 million via External Commercial Borrowings from a consortium of international banks. The financing was led by First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank. Of the total funds, US$ 400 million will be used to refinance existing debt, while the remainder will support growth capex across six airports—Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram—and expansion of AAHL’s non-aeronautical verticals including retai..

Next Story
Resources

CASE launches ‘Vijeta’ to skill youth in construction equipment sales

CASE Construction Equipment, a CNH brand, has launched ‘Vijeta’, a CSR initiative aimed at enhancing employability among underprivileged youth in the heavy equipment sector. The programme will equip participants with technical and practical skills required in construction equipment sales, particularly for backhoe loaders. It blends online and offline training, followed by a three-month hands-on industry stint at sales outlets, along with a monthly stipend. Puneet Vidyarthi, Head of Brand Marketing, CASE CE, APAC & India, said, “Vijeta bridges the skill gap in equipment sale..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?