The Indian Government has unveiled a new policy to promote electric vehicle manufacturing in the country. Under the policy, the minimum investment requirement will be ₹4150 crore. Manufacturers will get three years to set up manufacturing plants and start commercial production of electric vehicles. The new policy also says that the manufacturers must reach 50% domestic value addition within five years.
Import of EVs with lower custom duty
One of the key provisions of the new EV manufacturing policy is that companies setting up manufacturing facilities for EVs will be allowed limited imports of cars at lower custom duty. Remember, this has been a long-standing demand from Elon Musk's Tesla in order to set up a manufacturing base in India.