The new policy permitted companies to import a restricted number of automobiles at a 15% tariff on vehicles costing $35,000 or more for five years beginning with the day the clearance letter was issued.
Any revisions in the government of India’s new Electric Vehicle (EV) policy seem unlikely as global automakers like Tesla have shown a lack of interest in the growing Indian EV market, Moneycontrol reported.
According to an official from the Ministry of Heavy Industries (MHI), the qualifying requirement and other restrictions would stay the same for carmakers looking to take advantage of the current EV program.
“Our stance is clear. You can import cars with reduced duties if you make new investments (of $500 million) in an EV manufacturing plant in India,” stated the official.
In March, the government introduced the scheme to draw in significant global companies like Tesla. The new policy permitted companies to import a restricted number of automobiles at a 15% tariff on vehicles costing $35,000 or more for five years beginning with the day the clearance letter was issued.
Under the proposal, qualified applicants must establish manufacturing facilities in India with a minimum expenditure of $500 million for the production of e-4W (electric four-wheelers) and offer a bank guarantee.
“We are not worried that Tesla or any other vehicle has not filed for this policy. “We will not change the EV policy to benefit any particular company,” the spokesman stated. However, he added that the government is in negotiations with automakers to make the policy more industry-friendly.
The policy requires that the manufacturing facilities be operational within three years after the MHI’s issuance of the clearance letter, with an initial DVA (domestic value addition) of 25%. Later, the DVA must be increased to 50% within five years.
Companies will be able to import fully built-up unit (CBU) e-4W cars made by them for a 15% customs charge, subject to specific restrictions. The maximum number of e-4W units that can be imported at the lower tariff rate will be 8,000 per year. The program also allows for the rollover of unused yearly import quotas.
According to certain media sources, the government intends to amend its EV policy to provide incentives to manufacturers that have invested in the nation. According to the reports, the government may consider providing incentives to carmakers that have established production units for internal combustion electric vehicles (ICEVs), hybrids, and EVs.