Govt mulls easing policy regulations for EV makers in India, say sources

The central government is working on easing policy regulations for electric vehicle manufacturing in India, government sources have told Business Today TV.

“Various ministries like Finance, Heavy Industries, Road Transport Ministry and commerce ministry are discussing possible sops for foreign car manufacturers wanting to make in India for the world,” the sources said.

It is also learnt that the Prime Minister’s Office held a meeting for expediting policy decisions on the matter.

A reduction in the import duty and faster approvals are among the proposals that will be discussed by the officials. At present, all car imports attract 70 per cent import duty for vehicles upto $40,000, while cars above $40,000 attract a 100 per cent import duty.

Officials will also consider tweaks to various incentive schemes like production linked incentive, advanced cell chemistry to make them wider in their scope of support for the EV sector.

“We are in touch with executives of Tesla on its make in India plans”, the sources said. Business Today TV was the first to report this July on Tesla's localisation plans including the construction of a gigafactory with a capacity to produce 500,000 cars initially.

Tesla CEO Elon Musk and Prime Minister Narendra Modi met during the latter's state visit to the US in June. India has also invited US President Joe Biden to be the chief guest for the Republic Day celebrations on January 26, 2024.