Charging Ahead: India’s Bold Plan to Make EVs at Home

India is taking some big steps to make electric vehicles more homegrown. The government has just introduced a new policy that’s meant to bring global carmakers to India, but with a clear focus on building up local manufacturing muscle.

 

Here’s how it works: The new scheme lowers import duties on electric cars from 110% to 15%, but only for companies that are willing to invest at least ₹4,150 crore (about $500 million) in India within three years. These companies can bring in up to 8,000 fully built electric cars each year at the lower tax rate, as long as the cars cost at least $35,000. This gives them a chance to test the Indian market while they set up factories here.

 

But there’s a catch. The government wants these companies to actually make cars in India, not just sell imports. So, manufacturers have to source at least 25% of their components locally within three years and hit 50% local content within five years.

 

Alongside this, the government is putting more money into EV infrastructure, battery production, and incentives for local manufacturers. They’re also working on securing the raw materials needed for batteries, so India isn’t as dependent on imports.

 

The goal is pretty clear: create jobs, encourage innovation, and make India a serious player in the global electric vehicle market, all while cutting down on emissions.

 

Source: Hindustan Times