In response to questions over Tesla’s choice to stay out of the Indian market despite prior pronouncements, Amitabh Kant underlined that India cannot customise specific electric vehicle (EV) laws for each manufacturer. He explained that India has developed an all-encompassing EV policy that applies to all enterprises, meaning that the nation would not modify its EV policy to suit particular companies.
Kant stressed, “The policy has been announced. You can’t have policies for individual companies. The policy for EVs has been announced.” This implies that Tesla may have made specific requests to the Indian government tailored to its needs.
In India’s EV policy, there are incentives provided for the establishment of manufacturing facilities within the nation. It mandates a minimum investment threshold of INR 4,150 crore (USD 500 million) and encourages significant levels of domestic value addition (DVA) in manufacturing. By the third year, at least 25% of vehicle parts should be domestically sourced, increasing to 50% by the fifth year.
Under this policy, companies setting up EV manufacturing facilities can import a limited number of vehicles at a reduced customs duty of 15% for five years. The import quota is capped based on investment or a maximum value of INR 6484 crore.
Kant also highlighted significant upcoming developments, anticipating a surge in electric vehicle production, particularly in two-wheelers, three-wheelers, and buses. He underscored the government’s commitment to electric mobility, citing the allocation of INR 57,613 crores for procuring 10,000 electric buses and acknowledging the global trend towards sustainable transportation.
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