TL;DR
India's EV manufacturing policy has not received any applications from global automakers due to concerns over high investment requirements and market viability.
More than two and a half years after its announcement, India's electric passenger vehicle manufacturing policy has yet to attract a single application from a global automaker. This outcome raises questions about whether the investment requirements, localization mandates, and duty incentives offered under the scheme align with the commitments global carmakers are willing to make in the Indian market.
Industry experts indicate that the substantial investment requirement, specifically committing at least ₹4,150 crore in fresh investment, is a primary concern for automakers, who question its commercial viability given India's still-developing electric passenger vehicle market. Existing manufacturers have also sought clarification on whether their current investments could contribute towards meeting these policy requirements, highlighting the complexities and challenges in attracting foreign direct investment into the burgeoning EV sector.
