India has approved a new electric vehicle (EV) policy that mandates companies to invest a minimum of $500 million in the country and allows them three years to set up local operations. This policy is a significant boost to Tesla’s market entry plans in India, as the company has been in talks with the government to finalize a package of incentives that could include lower import duties. The new EV policy in India aims to promote local manufacturing and investment in the EV sector, aligning with Tesla’s strategy to enter the Indian market and potentially start manufacturing locally in the future.
What are the key provisions of india’s new ev policy?
India’s new electric vehicle (EV) policy mandates companies to invest a minimum of $500 million in the country and allows them three years to set up local operations. This policy is aimed at promoting local manufacturing and investment in the EV sector, aligning with Tesla’s market entry plans in India. Additionally, the government is working on a policy to offer Tesla a 2-3 year period of lowered import taxes for cars priced beyond Rs 30 lakh, with the objective of boosting local manufacturing and job creation in the EV sector.
What are the penalties for non-compliance with India’s new ev policy?
Non-compliance with India’s new electric vehicle (EV) policy, which mandates companies to invest a minimum of $500 million in the country and allows them three years to set up local operations, can result in penalties. The policy includes mandates for Extended Producer Responsibility (EPR) for Indian battery manufacturers, with penalties for non-compliance. This aspect of the policy aims to ensure that companies adhere to their responsibilities in terms of recycling and managing EV batteries, emphasizing environmental sustainability and proper disposal practices.
To qualify, companies must meet specific requirements to be permitted to import up to 8,000 electric vehicles (EVs) per year at a reduced import duty of 15%, applicable to cars priced at $35,000 or higher. In India, the standard import tax for cars is 70% or 100%, depending on their value.
