Global Carmakers Eye India for EV Manufacturing Push

03 Jun 2025 CW Team

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.

Infrastructure Transport

06 May 2026

Pune To Build Nine Km Link Road Between Highways

The Pune Municipal Corporation (PMC) has decided to appoint an expert to plan the development of a nine km long, 60 metre wide road from Khadi Machine chowk to Wadki chowk as an extension to the Katraj-Kondhwa road to link the Mumbai-Satara and Pune-Solapur national highways. The scheme is intended to divert heavy vehicle traffic away from the city and improve access between the two arterial routes. The project has been prioritised by the PMC and forms part of a larger set of schemes in which 19 roads have been identified for development at a combined cost of Rs 9.82 billion (bn) to address c..

Infrastructure Transport

06 May 2026

Barabanki Bahraich Six Lane Highway Approved in Uttar Pradesh

The Uttar Pradesh government has approved construction of a new six-lane highway linking Barabanki and Bahraich as part of National Highway 927, and the cabinet has cleared the project. The alignment will pass through Mustafabad and Kaiserganj and extend for about 101.5 km, creating a key corridor for local and long-distance movement. The National Highways Authority of India will oversee the work and has signalled the scheme is intended to strengthen regional connectivity and cross-border access to Nepal. The project carries an estimated total cost of Rs 69,690 million, equivalent to Rs 69.69..

Infrastructure Transport

06 May 2026

Toll At Kharegaon Likely As Highway Upgrade Nears Completion

A section of the highway at Kharegaon has undergone an upgrade and is approaching completion, and authorities have indicated plans for a toll to be introduced once works finish. The project has focused on strengthening the carriageway, improving drainage and upgrading intersections to enhance safety and capacity. Officials have said the toll will be used to recover construction costs and fund ongoing maintenance. The upgrade included resurfacing of the pavement, widening of certain stretches and installation of modern signage and lighting to reduce accident risk. Contractors completed most ma..