The landmark initiative aligns with India’s national goals of achieving Net Zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact

Agencies New Delhi

The government will significantly lower import tax for foreign automakers that pledge to invest in domestic electric vehicle (EV) production, as it looks to strengthen local manufacturing and draw in global industry leaders.

Automakers will be permitted to import up to 8,000 electric vehicles at a reduced duty rate of 15 per cent, compared to the current 70-100 per cent, provided they commit to investing Rs 4,150 crore in local EV manufacturing, according to the new EV policy notified by the government.

They will be required to begin operations at their manufacturing facilities in India within three years of receiving approval and must meet specified local content requirements, according to the notified guidelines under the Scheme to Promote Manufacturing of Electric Passenger Cars in India.

The government on Monday notified guidelines to give effect to the Scheme, paving the way for electric car makers to apply once the application window opens. Officials said the application window may open in a couple of weeks for at least 120 days. 

The Scheme was notified on March 15 last year by the Heavy Industries Ministry.

"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% for a period of 5 years from the Application Approval Date. Approved applicants would be required to make a minimum investment of Rs 4,150 cr in line with the provisions of the scheme," an official statement said. The maximum duty foregone per applicant has been capped at Rs 6,484 crore on the investment made under the Scheme.  

Mercedes Benz, Volkswagen-Skoda, Hyundai, Kia interested in making EVs in India: Min

Global automobile makers including Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest in manufacturing electric cars in India, Union Heavy Industries Minister H D Kumaraswamy said on Monday. The said companies have expressed interest during the stakeholder discussions between the government and the industry regarding the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India', the detailed guidelines for which were unveiled by the minister. While the scheme was notified on March 15 last year, its guidelines were issued on Monday.

The window to apply under the scheme will open in a couple of weeks, and it remains to be seen which companies would actually go ahead and apply. The window for receiving applications through the Notice Inviting Applications will be for a period of 120 days (or more). The Ministry shall have the right to open the application window, as and when required till March 15, 2026.