The Indian government made a landmark announcement on March 15, 2024 approving a comprehensive scheme aimed at positioning India as a global hub for electric vehicle (EV) manufacturing. The government has permitted companies to import up to 8,000 EVs annually at a reduced customs duty of__________% on cars valued over $35,000. This is a significant reduction from the current tariffs of 70% to 100%.

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The Indian government made a landmark announcement on March 15, approving a comprehensive scheme aimed at positioning India as a global hub for electric vehicle (EV) manufacturing. This policy, designed by the Ministry of Commerce & Industry, seeks to entice significant investments from renowned global EV manufacturers into the Indian market. The essence of the policy is to foster innovation, attract investments, and make advanced technology accessible within the country. Companies are required to invest at least Rs 4,150 crore, with the policy not capping the maximum possible investment. This move is to ensure substantial financial influx into the EV sector.

A notable feature of this initiative is the mandate for companies to achieve a 25% localisation level by the end of the third year and 50% by the fifth year, promoting domestic industries and components. The government has permitted companies to import up to 8,000 EVs annually at a reduced customs duty of 15% on cars valued over $35,000. This is a significant reduction from the current tariffs of 70% to 100%.