- The Centre has approved a new EV policy that is expected to lure foreign brands like Tesla to invest and manufacture in India.
Indian electric vehicle manufacturers have welcomed the Centre’s decision to lower import taxes to invite foreign EV makers to invest in India and manufacture locally. On Friday (March 15), the Centre had approved a new EV policy which opened the gate for global EV brands to launch in India with the condition to invest a minimum of ₹4,150 crore and deadline of three years to start manufacturing locally. For India, aiming to be the next global hub for electric vehicles, the new policy could see a number of prominent companies like Tesla launching here soon.
India’s largest electric two-wheeler manufacturer Ola Electric and Mahindra, which plans to launch as many as five electric vehicles in India in the next few years, welcomed the Centre’s move. The Centre has promised to reduce EV import duties to 15 per cent for foreign carmakers if they fulfil the government’s condition on investments and local manufacturing. The policy says the imported EV prices should not exceed $35,000 (roughly converted to around ₹29 lakh). The condition restricts foreign EV makers to import no more than 8,000 electric cars to India in a year.
Mahindra and Mahindra issued a statement welcoming the new EV policy, It read, “The recently announced EV policy for new entrants reinforces the Make in India momentum, with requirements of bank guarantees, minimum investment commitment, and local value addition. This will help accelerate the EV ecosystem in India.” The carmaker, known more for its SUVs in India, currently offers XUV400 as the only EV in its lineup. Mahindra also said that first of its upcoming Born Electric SUVs is scheduled for India launch in January next year, most likely during the second edition of Bharat Mobility Global Expo.
Ola Electric too welcomed the new EV policy, calling it a ‘progressive decision’ to lower EV import duties. Bhavish Aggarwal, CEO and founder at Ola Electric, took to social media and said, “This is a win for the Make In India initiative & strengthens our manufacturing ecosystem, propelling India towards a greener future. India will become the global EV hub of manufacturing and technology.” Ola Electric sells the likes of S1 Pro, S1 Air and S1 X electric scooters in India.
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Among global EV makers aiming for a India launch soon, Vitenam-based EV startup VinFast has also reacted to the new EV policy. Pham Sanh Chau, CEO of VinFast India, issued a statement saying, “We highly value the Indian Government’s new EV scheme as it aims to drive large investments in manufacturing, create competencies and upskilling, set up a robust supply chain and offer consumers world-class, zero tailpipe emission vehicles. With a long-term growth commitment in India, we have pledged an expenditure of $500 million.” VinFast is currently setting up an electric vehicle manufacturing facility in Tamil Nadu. It plans to manufacture electric SUVs locally.
The new EV policy is seen as an opportunity for global EV brands like Tesla to launch in India. In fact, Tesla has been the most active among global brands to lobby for a lower EV import duty in India. The efforts, despite Indian EV manufacturers like Tata Motors demanding level-playing field for all, bore fruits finally. Tata Motors is yet to come out with an official statement on the new policy. However, the Centre has put certain conditions that will help to promote local manufacturing as well as bring in foreign carmakers to turn India into a new global EV hub.
First Published Date: 18 Mar 2024, 16:29 PM IST
