In a formal statement in New Delhi, the government clarified its current position regarding the possibility of granting duty concessions and exemptions for the importation of electric vehicles (EVs) into India. Minister of State for Commerce and Industry, Som Prakash, highlighted that at present, there are no plans or proposals to offer exemptions from local value addition costs or to provide subsidies on import duties for EVs in the country.
Minister of State for Commerce and Industry, Som Parkash, clarified that there are currently no considerations for proposals aimed at granting exemptions on local value addition or import duties specifically for electric vehicles (EVs), including those produced by major multinational car manufacturers such as Tesla. He emphasized the government’s focus on a production-linked incentive scheme instead of providing special exemptions for companies like Tesla, especially concerning crucial components like heavy batteries, semiconductors, and magnetic parts.
The government’s production-linked incentive scheme, with a significant budget of Rs 25,938 crore, aims to boost domestic manufacturing in the automobile and auto component industry. Its primary objective is to provide financial incentives to encourage the production of advanced automotive technologies, particularly EVs and their essential components, thus strengthening the domestic manufacturing ecosystem.
Recent initiatives highlight the government’s proactive approach to attract both domestic and international investments in the EV sector. Notably, there’s an initiative to incentivize Tesla, a leading U.S.-based EV manufacturer, to establish a large-scale Advanced Chemistry Cell (ACC) manufacturing facility in Fremont, California. Additionally, authorities plan to double the import of automotive components from India, aiming to foster strong partnerships between global industry leaders like Tesla and India’s growing automotive manufacturing capabilities.
Minister of State for Commerce and Industry, Som Parkash, unequivocally stated that as of now, there are no contemplations or plans to extend exemptions related to local value addition or import duties, specifically tailored for electric vehicles (EVs). This stance encompasses renowned multinational automotive manufacturers such as Tesla. Responding to inquiries about potential exemptions, particularly concerning critical components like heavy batteries, semiconductors, and magnetic parts, Minister Parkash emphasized the government’s emphasis on implementing a production-linked incentive scheme.
The overarching goal of this scheme, backed by a substantial allocation of Rs 25,938 crore, is to invigorate domestic manufacturing within the automobile and auto component sector. It seeks to provide financial incentives aimed at spurring the production of advanced automotive technologies, notably EVs and their pivotal components, thereby fortifying the domestic manufacturing framework.
Recent government initiatives underscore a proactive approach to attract both domestic and international investments in the EV sector. A noteworthy effort involves incentivizing Tesla, a prominent U.S.-based EV giant, to establish a sizeable Advanced Chemistry Cell (ACC) manufacturing facility in Fremont, California. Simultaneously, authorities have outlined intentions to double the import of automotive components from India, aligning with the broader strategy of fostering robust collaborations between globally acclaimed industry leaders like Tesla and the burgeoning capabilities of India’s automotive manufacturing sector. These measures signify a concerted effort to bolster the country’s EV landscape while nurturing strategic partnerships for mutual growth and innovation.