TL;DR
India's revised EV policy offers reduced import duties (15% for five years) on EVs valued over $35,000, capped at 8,000 units annually, requiring a minimum $500 million investment and phased domestic value addition for global manufacturers.
India has introduced a revised Electric Vehicle (EV) policy aimed at attracting global manufacturers by significantly reducing import duties on certain EVs. This new framework serves as a powerful incentive for international companies to establish manufacturing facilities within the country.
Key features of the policy include a reduction in import duty to 15% for a period of five years, applicable to EVs with a minimum CIF (Cost, Insurance, and Freight) value of $35,000. This is a substantial decrease from the previous rates, which ranged from 70% to 100%. The concessional duty rate, however, is capped at a maximum of 8,000 cars per year, with a total limit of 40,000 EVs over the five-year period.
To avail of these duty concessions, manufacturers must commit to a minimum investment of ₹4,150 crore (approximately $500 million) to set up a manufacturing facility in India. The policy also mandates a phased increase in domestic value addition (DVA), requiring companies to achieve 25% DVA by the third year and 50% by the fifth year of their operations. This initiative underscores India's ambition to become a global hub for EV manufacturing and to accelerate the adoption of electric mobility.
