In a futuristic leap towards becoming the global hotspot for electric vehicles (EVs), the Indian government has turbocharged its policies, making it irresistible for EV manufacturers worldwide. With a bold vision painted green and electric, the authorities have flicked the switch on an electrifying scheme aimed at transforming India into an EV manufacturing powerhouse. “Charge Up, Investors!” seems to be the rallying cry as the country opens its doors wide to innovation, technology, and sustainable mobility.
At the heart of this electric dream is a robust policy framework that’s as inviting as a wide-open highway. To kickstart their EV manufacturing journey in India, investors need to fuel up their commitment with a minimum investment of a whopping Rs 4150 Cr (around USD 500 Mn), but here’s the catch – the sky’s the limit on how much they can invest. It’s a green race with no finish line on investments.
Manufacturers have a three-year pit stop to set up their manufacturing plants on Indian soil and hit the gas on commercial production of EVs. Within five years, these electric chariots must boast a 50% Made-in-India tag, showcasing the country’s prowess in manufacturing and innovation.
The policy isn’t just about assembling EVs; it’s a green marathon towards self-reliance. Companies have to achieve a domestic value addition (DVA) of 25% by the end of the third year and rev it up to 50% by the fifth. To sweeten the deal, those who set their manufacturing bases in India get to import a limited number of EVs at a reduced custom duty of 15%, a clear sign that India is ready to race ahead in the EV market.
In a move that gears up for a future less dependent on crude oil, the scheme is a beacon for reducing imports, cutting down the trade deficit, and ensuring cleaner, greener cities. It promises a breath of fresh air, quite literally, by lowering air pollution and positively impacting health and the environment.
This policy is a testament to India’s ambition to lead the charge in the EV revolution, making it a prime destination for manufacturers with a vision for a sustainable future. So, EV makers, start your engines and get ready to drive into a future where India is not just a market, but a key player in the global electric vehicle industry.
