India to Finalize New EV Policy in March, Limits Charging Investment for Tariff Relief

India is set to finalize its new electric vehicle (EV) policy by mid-March 2025, aiming to attract global automakers like Tesla. The revised policy will require carmakers to demonstrate a turnover of ₹2,500 crore in their second year of operations. Importantly, only 5% of EV investments toward charging infrastructure will count for tariff relief for foreign automakers. The policy will reduce import duties to 15% for EVs priced above $35,000, with a cap of 8,000 units annually. Companies must invest at least ₹4,150 crore and achieve 25% domestic value addition within three years, increasing to 50% in five years.

 

Source: Based on information from Economic Times and Reuters reports