India drafts new EV policy; same for all companies

20 May 2024 CW Team

Kant stated, "India has drafted an EV policy, and all companies must adhere to it. You can't have policies for individual companies." He reiterated that the policy, which includes incentives for setting up manufacturing units, sets a minimum investment threshold of Rs 41.50 billion and mandates that by the third year, at least 25% of the parts used must be sourced domestically, increasing to 50% by the fifth year.

Under the new policy, companies establishing manufacturing facilities in India for EV passenger cars can import a limited number of cars at a lower customs duty of 15% on vehicles costing $35,000 and above for five years from the approval date. The total number of EVs allowed for import is capped based on the investment, or a maximum value of Rs 64.84 billion, whichever is lower. If the investment exceeds $800 million, a maximum of 40,000 EVs can be imported, with a limit of 8,000 per year, and unused import limits can be carried over.

Kant highlighted the ongoing transformations in the automotive industry driven by the global shift towards sustainable transportation. He noted, "There is a huge disruption taking place, and it's important to accelerate the pace of electric vehicles, especially in two-wheelers and three-wheelers, which account for about 75% of our vehicles. The government has allocated Rs 576.13 billion for procuring 10,000 electric buses."

Kant anticipates these investments will significantly boost the manufacturing of electric two-wheelers, three-wheelers, and buses, furthering India's transition to sustainable transportation.

(Source: ANI & ET Energy)

Amitabh Kant, Sherpa, G20, emphasised the need for a uniform EV policy applicable to all companies in India, asserting that the country will not alter its policy to cater to specific corporate demands. This statement comes amid speculations that Tesla had made particular requests to the Indian government, leading to its decision not to enter the Indian market despite an anticipated visit by the CEO in April. Kant stated, India has drafted an EV policy, and all companies must adhere to it. You can't have policies for individual companies. He reiterated that the policy, which includes incentives for setting up manufacturing units, sets a minimum investment threshold of Rs 41.50 billion and mandates that by the third year, at least 25% of the parts used must be sourced domestically, increasing to 50% by the fifth year. Under the new policy, companies establishing manufacturing facilities in India for EV passenger cars can import a limited number of cars at a lower customs duty of 15% on vehicles costing $35,000 and above for five years from the approval date. The total number of EVs allowed for import is capped based on the investment, or a maximum value of Rs 64.84 billion, whichever is lower. If the investment exceeds $800 million, a maximum of 40,000 EVs can be imported, with a limit of 8,000 per year, and unused import limits can be carried over. Kant highlighted the ongoing transformations in the automotive industry driven by the global shift towards sustainable transportation. He noted, There is a huge disruption taking place, and it's important to accelerate the pace of electric vehicles, especially in two-wheelers and three-wheelers, which account for about 75% of our vehicles. The government has allocated Rs 576.13 billion for procuring 10,000 electric buses. Kant anticipates these investments will significantly boost the manufacturing of electric two-wheelers, three-wheelers, and buses, furthering India's transition to sustainable transportation. (Source: ANI & ET Energy)

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