In order to reduce import taxes and draw in international companies like Tesla, the Indian government is about to announce its new Electric Vehicle (EV) strategy. By the second year, the policy is anticipated to need a minimum turnover of Rs 2,500 crore and demand an investment of Rs 4,150 crore from manufacturers who are interested. Although previous investments and land or building costs will not be included in the required investment amount, the proposed regulation will permit businesses to establish assembly operations in existing facilities. According to Economic Times, manufacturers who meet the requirements will be eligible for a 15% import duty, which is a substantial decrease from the existing 110% rate.
Companies will have 120 days to apply, and the program will allow up to 8,000 premium EVs (those costing more than $35,000) to be imported annually at lower charges. Achieving a 25% local value addition, which must increase to 50% within five years, and setting up manufacturing facilities within three years are requirements for approved candidates.
Progressive turnover targets are also outlined in the policy, with the following requirements:
- Rs 2,500 crore by the second year,
- Rs 5,000 crore by the fourth year, and
- Rs 7,500 crore by the fifth year. By July or August, approval letters might be sent out, opening the door for imported EVs to arrive in India shortly after.
Many people believe that Tesla is a major benefactor of this program. According to reports, Tesla intends to launch a cheap EV in India in April 2025, with a price tag of Rs 21–22 lakh.
According to reports, the company has decided to open its first showrooms in Delhi and Mumbai. According to Bloomberg, Tesla Inc. plans to transport a few thousand vehicles to a port close to Mumbai in the upcoming months. Around the third quarter of 2025, the US manufacturer intends to start selling in Bangalore, Delhi, and Mumbai.
Although their investment plans are yet unknown, Hyundai and Volkswagen have also shown interest in the idea during government discussions. By accelerating the adoption of EVs, the government may provide opportunities for international EV companies, encourage domestic production, and increase the affordability of luxury EVs for Indian consumers.
Click Here to get the latest EV news and exclusive updates from EV Mechanica on WhatsApp!