Big names in global auto are eyeing India—not for petrol power, but for EVs. The scheme, officially notified last year, sparked this fresh interest, says Union Heavy Industries Minister.
Several car manufacturers, including Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia, are exploring opportunities to manufacture electric vehicles (EVs) in India. This was confirmed by Union Heavy Industries Minister H D Kumaraswamy on Monday.
The companies expressed their interest during discussions on the recently detailed “Scheme to Promote Manufacturing of Electric Passenger Cars in India.” While the scheme was officially notified in March 2024, its operational guidelines were unveiled this week.
Minister Kumaraswamy stated that these major players have already signalled their intent to participate. The initiative aims to attract foreign investment into India’s EV sector by offering regulatory and fiscal incentives.
Under the scheme, approved manufacturers will be permitted to import completely built units (CBUs) of electric four-wheelers with a minimum CIF (cost, insurance, and freight) value of $35,000 at a reduced customs duty of 15 per cent. This concession will be available for five years from the date of approval.
To qualify, applicants must commit to a minimum investment of ₹41.5 billion and meet localisation targets as defined in the scheme.
The application process will begin within weeks, with the window remaining open for 120 days. However, the Ministry of Heavy Industries reserves the right to reopen it at intervals until 15 March 2026.
This development comes as India intensifies efforts to become a major EV manufacturing hub, while simultaneously reducing reliance on fossil fuels. It also follows the Minister’s recent statement that Tesla, despite looking to expand in India, is not interested in local manufacturing.
The government hopes the scheme will drive innovation, create jobs, and position India as a competitive player in the global EV market.
Read more: Tesla Unlikely To Manufacture In India, Says Minister
