New EV policy approved by the Indian Government to boost Tesla’s market entry plans.
In the new EV policy, the government’s focus will be on domestic EV manufacturing.
The policy is also designed to attract investments in the e-vehicle sector by reputed global EV manufacturers.
Under the policy, a company will have to invest a minimum of Rs 4150 crore and there is no maximum limit on investment.
The company will have to start its plant in 3 years.
Within 5 years, the company also has to reach 50% domestic value addition (DVA).
To increase domestic value addition (DVA) during manufacturing, the government aims to achieve a localization level of 25% by the third year and 50% by the fifth year.
Customs duty of 15% (as applicable to CKD units) will be applicable on vehicles with a minimum CIF value of US$ 35,000 and above for a total period of 5 years.
This will require the manufacturer to set up manufacturing facilities in India within a period of 3 years.
If Tesla comes, first a plant will have to be set up, and then production will start.
The bank guarantee of the companies will be returned once 50% DVA is reached.
