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highlights
Central government approved the new electric vehicle policy.
Companies will invest a minimum of Rs 4,150 crore.
Import duty of 15% will be imposed on e-vehicles.
New Delhi. The central government has taken a big step to strengthen the country in the manufacturing of electric vehicles. The government has approved a new electric vehicle policy (New EV Policy) to develop the country as a manufacturing hub for electric vehicles. Under the new policy, now companies in the country can set up plants for manufacturing electric vehicles with a minimum investment of Rs 4,150 crore. For this, they will have to use at least 25 percent locally manufactured components in electric vehicles.
Companies that meet these requirements will be allowed to import up to 8,000 electric vehicles per year at a reduced import duty of 15% on cars priced at $35,000 and above. India imposes a tax of 70% or 100% on imported cars, depending on their value.
EV ecosystem will grow in the country
The statement issued by the government said that this move is expected to provide access to the latest technology and enhance the EV ecosystem and support the Make in India initiative. Duty exemption on electric vehicles that can be imported is limited to the annual PLI incentive (Rs 6,484 crore) or the investment made by the manufacturing company, whichever is lower.
Some special points of the new e-vehicle policy
,Under the new e-vehicle policy, companies will have to invest a minimum of Rs 4,150 crore to set up an EV plant, while there is no limit on the maximum investment.
–Companies will be given 3 years time to set up manufacturing plants. To start commercial production of e-vehicles and reach 50% domestic value addition (DVA) within a maximum of 5 years.
–The new policy has also focused on localization. It will be mandatory for companies to achieve 25 percent localization of their products by the third year and 50 percent localization by the fifth year.
–Excise duty of 15% will be imposed for a period of 5 years on electric vehicles priced at $35,000 and above coming in Completely Knocked Down (CKD) form in India. During this period, the company will have to set up a plant in India within a period of 3 years.
-If the investment is $800 million or more, a maximum of 40,000 electric vehicles will be allowed to be imported at the rate of 8,000 units per year.
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Tag: auto news, electric vehicles
first published : March 15, 2024, 3:02 pm IST
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