Reuters has learned from the source that it is hoped that these policy firms will enable investment from companies such as Hyundai and Toyota.
29 Nov 2024 | 5889 Views | By Autocar Professional Bureau
India aims to enhance its EV incentives to auto companies working on models at existing factories in India, rather than limiting the advantages to auto firms that look to build new plants, a person in the know informed Reuters.
The country's EV policy, still in the finalisation stages, was ...
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India aims to enhance its EV incentives to auto companies working on models at existing factories in India, rather than limiting the advantages to auto firms that look to build new plants, a person in the know informed Reuters.
The country's EV policy, still in the finalisation stages, was tailored in a manner to facilitate Tesla's market entry and make locally, but it withdrew from the plans this year, the newswire noted.
Other foreign firms have evinced interest in manufacturing electric vehicles in India at the current and new factories, as per a Minutes of Meeting with the MHI, reviewed by the newswire.
Reuters has learned from the source that it is hoped that these policy firms will enable investment from companies such as Hyundai and Toyota.
As per the policy announced in March, an auto company investing a minimum of USD 500 million to manufacture electric vehicles in India with half of the components sourced from India itself, would be entitled to a major reduction on import taxes. This translates to a wide encompassing range of 15% to 100%, for up to 8,000 electric cars each year, the newswire noted.
The government now will also look at EV investments at current factories that make hybrid and gasoline engine cars, the source told Reuters on condition of anonymity.
The caveat is that the electric models must be built on a separate production line and fulfil the local sourcing criteria, the source noted. He further added that when it comes to a new factory, investment in tools and machinery to manufacture EVs would be considered in towards meeting the USD 500 million requirement, even if it is used to make other types of cars.
The source further added that the government will set a minimum EV revenue target for a plant or production line that would need to be met to qualify for the scheme. This is being done to ensure fair treatment to all auto firms, the newswire reported.
As per the minutes of meeting, Toyota representatives asked whether the EV policy would have room for investing in a separate line in a plant that made several powertrains. It also asked for clarification on whether the making and installation of charging stations would count as part of the USD 500 million investment requirement, the newswire noted.