In light of the new EV policy introduced on Friday, concerns about its impact on domestic electric vehicle manufacturers have been addressed by Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh. The policy, which includes import duty concessions for companies investing a minimum of USD 500 million in manufacturing units, is designed to invigorate the Indian EV market without disadvantaging local players.
According to Singh, the objective is not to favor any particular entity but to stimulate the production of electric cars in India through stringent value-addition norms and controlled import allowances. Companies establishing EV manufacturing will be permitted to import a limited number of vehicles at a reduced customs duty of 15% for vehicles costing USD 35,000 and above, over a five-year period.
This strategic move, Singh explains, aims to introduce new players and advanced technology into the Indian market, thereby expanding it and fostering a competitive environment conducive to growth for both international entrants and domestic manufacturers. He emphasizes that the policy seeks to expand the EV ecosystem, benefiting from the arrival of global manufacturers and associated vendors, rather than cannibalizing the existing market shares of domestic companies.
Singh dismisses the idea that the policy caters to specific companies such as Tesla, asserting that decisions are made with the country’s and public’s best interests in mind. He reveals that there has been interest from multiple companies in setting up manufacturing units in India, indicating a broader appeal of the policy beyond individual firms.
The DPIIT Secretary’s comments underscore the government’s commitment to advancing the EV sector in India through balanced and inclusive policies that cater to the long-term development of the industry and the nation’s sustainable mobility goals.
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