The Indian government is trying to revive interest in its EV import program by hosting a workshop for companies interested in importing luxury EVs at lower import tariffs, according to an Economic Times report. The goal of this project is to gather feedback and understand the reasons behind the lack of enthusiasm for the program, which was initially presented with great expectation.
India started a scheme last year to encourage the import and domestic production of luxury electric automobiles by reducing import duties. This move was intended to attract large electric vehicle manufacturers, specifically Tesla, who had previously expressed interest in entering the Indian market in return for reduced import duties. However, the initiative’s reception has been less enthusiastic than anticipated, forcing the government to re-engage with stakeholders.
According to the story, the government plans to host a workshop later this month for companies interested in the initiative. Businesses will have the opportunity to learn more about the strategy and offer suggestions that could influence the final rules during this event. Large corporations such as Tata Motors, Maruti Suzuki, Hyundai, BMW, and Mercedes participated in the initial round of consultations in April 2024. The second round will be this one. Attending the seminar was also Tesla’s India representative, the Asia Group. Despite these efforts, very few companies have shown a strong interest in joining the initiative.
The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) allows companies to import electric automobiles with reduced tariffs under certain conditions. Companies must invest at least $500 million (about ₹4,150 crore) over five years, build EV factories, or create EV charging stations. Companies have five years to accomplish 50% domestic value addition (DVA), and three years to reach at least 25%. For vehicles costing $35,000 or more, authorized companies can import electric cars for a 15% customs duty savings rather than the usual higher rate. Businesses can import up to 8,000 electric vehicles annually at this discounted price, with any unused import licenses being carried over to the next year.
