Amitabh Kant, addressing why Tesla’s CEO cancelled a planned visit to India in April, emphasised that India cannot tailor its EV policies for individual companies. Kant asserted that India has established a comprehensive EV policy that all companies must adhere to without exception.
India’s EV policy includes incentives for setting up manufacturing units, requiring a minimum investment threshold of Rs 4,150 crore (US$ 500 million). The policy mandates that by the third year of operation, at least 25 per cent of the parts used in manufacturing must be sourced domestically, increasing to 50 per cent by the fifth year.
Under this policy, companies establishing EV manufacturing facilities in the country can import a limited number of vehicles at a reduced customs duty of 15 per cent on vehicles costing US$ 35,000 and above, valid for five years from the date of government approval. The total number of EVs allowed for import will be based on the investment made, or a maximum value of Rs 6484 crore, whichever is lower. For investments exceeding US$ 800 million, up to 40,000 EVs can be imported, with a cap of 8,000 per year. Any unused import limits can be carried over.
Kant highlighted the government’s significant steps to boost the EV sector, noting that Rs 57,613 crore has been allocated for procuring 10,000 electric buses. He mentioned that there is a considerable disruption occurring in the industry and emphasised the importance of accelerating the adoption of electric vehicles, particularly in two-wheelers and three-wheelers, which make up about 75 per cent of the vehicles on the road.
Kant predicted a substantial impact from these investments, anticipating a surge in the production of electric two-wheelers, three-wheelers, and buses, driven by the global shift towards sustainable transportation.
