The government is collaborating with national and international parties to develop a policy focused on increasing local electric vehicle (EV) production. Talks are in progress with prospective investors from nations such as Germany, the UK, and South Korea.
The government is engaging with both domestic and international parties to develop a policy aimed at enhancing the local production of electric vehicles (EVs). This initiative seeks to attract investors from countries like Germany, the UK, and South Korea. An official confirmed on Thursday that discussions are ongoing to involve these nations. The official emphasized the goal of inclusivity, with efforts to involve various countries, including Italy and South Korea, and to support Indian car manufacturers as well.
In the context of these developments, the Department for Promotion of Industry and Internal Trade is conducting high-level talks to establish a program that incentivizes electric four-wheeler production in India linked to the investments made by these companies.
Commerce and Industry Minister Piyush Goyal noted last month that Tesla Inc, the world’s most valued automotive company, plans to double its component imports from India. In September, he mentioned Tesla’s aim to procure components worth up to USD 1.9 billion from India this year, following a USD 1 billion purchase last year.
Tesla, the ninth largest company globally by market capitalization, is interested in selling its cars in India. However, the government has not agreed to Tesla’s request for reduced import duties, suggesting instead that Tesla establish manufacturing operations in India. Tesla has proposed a 40% import duty for fully assembled electric cars, in contrast to the current 60% rate for vehicles under USD 40,000 and 100% for those above. Tesla operates factories in several countries, including China, Germany, the USA, Canada, Mexico, and the Netherlands.
