The government on Monday announced a scheme that includes significant import tax cuts for foreign automakers that commit to investing in manufacturing electric cars in the country.
The scheme for promoting locally manufactured EVs
Under the Scheme to Promote Manufacturing of Electric Passenger Cars in India, companies will be allowed to import up to 8,000 electric four-wheeler units annually at a lower import duty of 15 per cent, against 70-100 per cent currently, provided they commit an investment of Rs 4,150 crore to build EVs in the country, the ministry of heavy industries shared in a statement.
As stated, the application window will open in a couple of weeks for at least 120 days.
"To encourage the global manufacturers to invest under the Scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced customs duty of 15 per cent for a period of 5 years from the Application Approval Date. Approved applicants would be required to make minimum investment of Rs 4,150 crore in line with the provisions of the scheme," an official statement said.
The maximum duty foregone per applicant has been assigned at Rs 6,484 crore, or the investment made under the scheme.
Automobile manufacturers, including Mercedes-Benz, Volkswagen, Skoda, Hyundai and Kia have already expressed their interest in the new policy, a federal minister told reporters in a media briefing on Monday.
Minister of Heavy Industries lauds PM Modi
The Union Minister of Heavy Industries and Steel, H.D. Kumaraswamy, said the landmark EV manufacturing scheme was launched under the leadership of PM Modi, making India a global hub for electric mobility.
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