How India New EV Policy Will Be a Game Changer?
The approval of a game-changing Electric Vehicle (EV) policy by the central government has given a significant boost to India’s EV sector.
How Tesla will enter to Indian Market?
This new policy is expected to attract investments from global EV manufacturers, including the possibility of Tesla entering the Indian market. Let’s delve into the key points of this policy and how it could pave the way for Tesla’s arrival in India.
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One of the key highlights of India’s new EV policy is the minimum investment requirement of Rs 4,150 crore, with no maximum limit on investment amount.
Companies looking to establish manufacturing facilities for EVs will have a three-year window to set up operations and commence production.
Within five years, these manufacturers are required to achieve a 50 percent domestic value addition during the manufacturing process, with a localization level of 25 percent to be achieved by the third year.
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Importantly, the policy also includes a provision to slash import duties to 15 percent, making it more feasible for global players like Tesla to enter the Indian market.
For vehicles with a minimum CIF value of USD 35,000, a lower customs duty rate of 15 percent will be applicable.
However, a higher import duty of 70 percent will be levied on EVs falling under this category if the manufacturer fails to establish manufacturing facilities in India within three years with an investment of USD 500 million.
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Tesla, in particular, has been advocating for a reduction in import taxes, and this new policy could be a significant step towards fulfilling that demand.
The policy also limits the number of EVs that can be imported each year to 40,000, with strict rules in place to ensure compliance with the specified criteria for domestic value addition and investment.
To ensure adherence to the policy guidelines, manufacturers will be required to provide a bank guarantee equal to the duty not paid, which will be utilized if they fail to meet the specified criteria.
Overall, India’s new EV policy sets the stage for significant growth in the sector and opens up opportunities for global players like Tesla to make their mark in the Indian market. How India New EV Policy Will Be a Game Changer?
