GOI approves E-Vehicle policy to Promote India as a Manufacturing Destination for e-vehicles:

GOI approves E-Vehicle policy to Promote India as a Manufacturing Destination for e-vehicles The Indian government has authorized a proposal to promote India as a manufacturing destination, allowing the country to produce cutting-edge e-vehicles. The strategy is intended to encourage investments in the e-vehicle industry by well-known worldwide EV manufacturers. This will provide Indian consumers with access to cutting-edge technology, boost the Make in India initiative and strengthen the EV ecosystem by encouraging healthy competition among EV players, resulting in high volume of production, economies of scale, lower production costs, lower crude oil imports, a lower trade deficit, lower air pollution, particularly in cities, and a positive impact on health and the environment. The policy entails the following: -

• Minimum Investment required: Rs 4150 Cr (∼USD 500 Mn).
• No limit on maximum Investment.
• Manufacturing timeline: Three years to establish manufacturing facilities in India and begin commercial production of e-vehicles, with a maximum of five years to achieve 50% domestic value addition (DVA).
• Domestic value addition (DVA) in manufacturing: Localization levels of 25% by the third year and 50% by the fifth year will be required.
• A 15% customs duty (as applicable to CKD units) would be imposed for a period of five years.
• Vehicles with CIF values of USD 35,000 or more will be permitted.
• The number of EVs authorized for import is decided by the total duty foregone or investment made, whichever is smaller, up to a maximum of Rs.6,484 Cr (equivalent to incentive under PLI plan).
• Under this program, a maximum of 8,000 EVs per year might be imported. The carryover of unused annual import quotas would be permitted.
• In lieu of the waived customs charge, the company's investment promise must be backed up by a bank guarantee.
• The Bank guarantee will be invoked if the DVA and minimum investment criteria specified in the plan guidelines are not met.

For Official Notification Download PDF Given Below: