The Center plans to expand its electric vehicle (EV) policy to include firms who now produce EVs, in addition to those who are eager to enter and build new factories, according to Reuters.
According to the paper, the strategy’s original goal was to persuade Tesla to open local production facilities and enter the Indian market, but this did not work out.
The source claims that multinational automakers like Hyundai and Toyota have shown interest in manufacturing EVs in India, and the recently amended laws will only serve to attract them.
In March of this year, India’s current EV policy went into effect, slashing import taxes on up to 8,000 EVs from 100% to 15%. However, this approach was designed for manufacturers who were prepared to spend at least $500 million to manufacture EVs in India with 50% locally sourced components.
The new regulatory modifications will allow existing firms that manufacture internal combustion engine and hybrid vehicles to invest in electric vehicles (EVs). The electric models must, however, be built using a separate production line and comply with local sourcing regulations.
The article claims that even if machines and equipment are also used to produce other types of cars, their investment would still be considered.
A plant or production line must also meet a minimum EV revenue target in order to qualify for the program. By March of the next year, the policy should be finalized, according to the research.
