The Government of India has introduced a new Electric Vehicle (EV) manufacturing policy aimed at boosting the production of electric cars in the country. This policy offers reduced import taxes to foreign carmakers who invest in building EV manufacturing facilities in India.
As per the guidelines, companies that invest a minimum of ₹4,150 crore will be allowed to import electric vehicles (e-4Ws) with a minimum cost of \$35,000 (CIF value) at a significantly reduced customs duty of 15% for a period of five years. To promote local manufacturing, the policy also requires companies to achieve a minimum Domestic Value Addition (DVA) of 25% within three years and 50% within five years from the date of approval.
While the policy is open to global automakers, Union Minister H.D. Kumaraswamy clarified that Tesla is not expected to set up a factory in India and will instead supply vehicles from its Berlin-based facility as Completely Built Units (CBUs).
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The application process for this scheme is expected to begin this month. Minister Kumaraswamy emphasized that this initiative, under the leadership of Prime Minister Narendra Modi, supports India’s goal of achieving net zero emissions by 2070 and positions the country as a global hub for automotive innovation and sustainable mobility.
