The electric vehicle policy significantly cuts the import duty on electric cars to 15% from the current 70% for five years.
15 Mar 2024 | 3963 Views | By Autocar Professional Bureau
ACMA, the apex body representing India’s auto component sector, has welcomed the Government's announcement of the e-vehicle policy.
Shradha Suri Marwah, President ACMA & CMD Subros Ltd, said, "The EV Policy marks another significant step towards accelerating the adoption of cutting-edge technology and fostering innovation in India's automotive sector."
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ACMA, the apex body representing India’s auto component sector, has welcomed the Government's announcement of the e-vehicle policy.
Shradha Suri Marwah, President ACMA & CMD Subros Ltd, said, "The EV Policy marks another significant step towards accelerating the adoption of cutting-edge technology and fostering innovation in India's automotive sector."
"The policy not only aims to attract global EV majors to invest in India but also emphasises a significant Domestic Value Addition (DVA) criteria, ensuring the creation of a robust supplyside ecosystem."
Paving the way for the entry of more global automakers in the country, the centre today announced a much-anticipated electric vehicle policy that significantly cuts the import duty on electric cars to 15% from the current 70% for five years. This lower import tax on completely knocked down units is applicable only if companies commit to a minimum investment of Rs 4,150 crore, or US 500 million, for manufacturing in India.
“Under this scheme, EV passenger cars (e-4W) can initially be imported with a minimum CIF value of USD 35,000, at a duty rate of 15% for a period of 5 years from the date of issuance of approval letter by MHI (Ministry of Heavy Industries),” according to a gazette notification issued today.
As per the new policy, companies will have to commit a minimum investment of Rs 4,150 crore for setting up manufacturing facilities within three years and start commercial production. There is also a clause on domestic value addition – the manufacturers will have to achieve a 30% domestic value addition within three years of production and further increase it to 50% by the fifth year.