ANI –
India cannot have individual electronic vehicle (EV) policies for every company, according to Amitabh Kant, the former Chief Executive Officer of NITI Aayog, a public policy think tank of the Government of India. Kant addressed the question of why Tesla did not come to India after its CEO, Elon Musk, announced an India visit in April but canceled it at the last moment.
Kant emphasized that India has already drafted an EV policy, and all companies must adhere to that policy. The country will not alter its EV policy based on specific companies’ demands.
“The policy has been announced. You can’t have policies for individual companies. The policy for EVs has been announced,” he stated.
Kant’s statement highlights the possibility that Tesla may have made specific requests from the Indian government tailored to the company’s needs.
India’s EV policy includes incentives for establishing manufacturing units within the country. The policy sets a minimum investment threshold of ₹4,150 crore ($500 million) and encourages manufacturers to achieve significant levels of domestic value addition (DVA). By the third year of setting up a manufacturing unit, at least 25 percent of the vehicle parts should be sourced domestically. This localization level is expected to increase to 50 percent by the fifth year of operation.
Under the new policy, companies setting up manufacturing facilities in India for EV passenger cars can import a limited number of vehicles at a lower customs/import duty of 15 percent. This applies to vehicles costing $35,000 and above, valid for five years from the issuance of the government’s approval letter. The total number of EVs allowed for import is determined based on the investment made, capped at a maximum value of ₹6,484 crore. If the investment exceeds $800 million, a maximum of 40,000 EVs can be imported, with no more than 8,000 per year. Unused import limits can be carried over.
Speaking to ANI, Kant highlighted the significant disruption occurring in the automotive industry due to the global shift toward sustainable transportation. “A lot of action is underway in the coming five years,” Kant said.
He stressed the importance of accelerating the adoption of electric vehicles, especially in the two-wheeler and three-wheeler segments, which constitute about 75 percent of India’s vehicles.
“The government has already allocated ₹57,613 crores for procuring 10,000 electric buses,” Kant said while predicting a surge in the manufacturing of electric two-wheelers, three-wheelers, and buses in the coming years.
