The policy of this EV was announced in March last year. Bloomberg News Report: It has been reported by Heavy Industries and Steel Minister HD Kumaraswamy that applications can be sought soon under this policy. It has been offered to reduce the duty on imported electric vehicles up to $ 35,000 to 15 percent.
However, to take advantage of the import duty exemption, the EV company will have to invest a minimum of $ 500 million in setting up a factory in the country within three years. In this policy, an annual duty of up to 8,000 cars can be imported on reduced duty.
The condition of financial eligibility for companies taking advantage of this policy has been made strict. In this, EV maker will have to get a minimum of Rs 50 billion in revenue in the fourth year of its business. The company that does not meet this condition will have to pay up to a three percent penalty of the difference in revenue.
However, Kumaraswamy has said that Tesla is less likely to join this policy as it does not want to manufacture in the country. Tesla plans to sell imported electric cars through showrooms and dealerships. Kumaraswamy has not given much information about this. Tesla is preparing to start a business in India soon. However, Musk also expressed displeasure over more import duties in the country.
China’s BYD EV is being sold in the country. Due to the government’s strict attitude towards China, it is difficult for BYD to join this policy. Vinfast of Vietnam is building a factory in the country before the start of this policy. VinFast has confirmed the launch of its VF6 and VF7 in the country.
Both these electric SUVs have been designed and developed in Viamam. However, these SUVs will be changed according to Indian conditions. Market analysts say that this EV policy may fail as big EV companies like Tesla, Byd, and Vinfast will not benefit much from not joining it.
