In a significant move to encourage electric vehicle (EV) manufacturing investments, the Indian government has clarified that there are no restrictions on importing electric cars from any country, including China.
Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), emphasized that the current policy allows for the importation of EVs from China as long as duties are paid and domestic value addition criteria are met.
Policy Details:
Under India’s new EV manufacturing policy, substantial incentives are offered to attract investments.
Companies investing a minimum of Rs 4,150 crore in electric car manufacturing can receive rebates ranging from 100% to 15%.
However, failure to commence manufacturing within three years or achieve the target of 25% domestic value addition within five years may result in forfeiture of the bank guarantee required from applicants.
Stakeholder Response:
Singh noted that the new policy has garnered positive feedback from a wide range of stakeholders, including those who previously expressed reservations.
He highlighted the favorable response from both domestic and global companies, indicating a strong endorsement of the policy’s balanced approach.
Future Outlook:
While emphasizing the current policy’s permissiveness regarding EV imports from China, Singh refrained from speculating on potential future changes.
However, he underscored the policy’s flexibility and its ability to accommodate diverse interests within the EV manufacturing sector.
As India ramps up efforts to promote electric mobility, the government’s stance on EV imports underscores its commitment to fostering a conducive environment for investment and technological innovation in the electric vehicle industry.
