According to Reuters, the Center intends to broaden its electric vehicle (EV) policy beyond manufacturers who are willing to enter and construct new factories to include those that presently produce EVs.
The article claims that the strategy was initially intended to entice Tesla to enter the Indian market and establish local manufacturing, but this did not materialize.
According to the source, foreign automakers like Toyota and Hyundai have expressed interest in producing EVs in India, and the recently changed legislation would further entice them.
When India’s current EV policy launched in March of this year, import duties for up to 8,000 EVs were drastically reduced from 100% to 15%. This strategy, however, was intended for manufacturers who were willing to commit at least $500 million to produce EVs in India using 50% locally sourced parts.
Existing factories that produce hybrid and internal combustion engine vehicles will be able to invest in electric vehicles (EVs) under the new policy amendments. However, the electric models will need to be constructed on a different production line and adhere to local sourcing requirements.
According to the article, investment in equipment and machinery would be taken into account even if they are also used to make other kinds of cars.
In order to be eligible for the program, a factory or production line must also reach a minimum EV revenue target. The analysis predicts that the policy will be finalized by March of the following year.
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