As per the new electric vehicle policy 2024, customs duty has been reduced to 15 percent and it will be imposed on EVs with a minimum CIF (Cost, Insurance, and Freight) value of USD 35,000 or above for a total period of 5 years.
A senior government official has now told the media that all the EV firms in the country including the existing car manufacturers will be permitted to make greenfield investment commitments under the new electric vehicle policy 2024. The decision will be announced and finalized as part of the detailed guidelines, which are now being finalized by the ministry of heavy industries.
The official also added that the second round of industry discussions will commence soon. The plan was announced when business tycoon Elon Musk canceled his official meetings with Prime Minister Modi, adding “very heavy Tesla obligations.” He is expected to visit the country towards the end of this year. As per a Business Standard report, "They (Tesla) are just silent.. the (EV) policy was always meant for everybody," the official further added.
As per the new electric vehicle policy 2024, customs duty has been reduced to 15 percent and it will be imposed on EVs with a minimum CIF (Cost, Insurance, and Freight) value of USD 35,000 or above for a total period of 5 years. The policy caps the number of imported EVs at 8,000 each year. Manufacturers must invest a minimum of Rs 4,150 crore (∼USD 500 Mn) to avail duty concessions. The companies must set up operational facilities within 3 years and achieve a minimum domestic value addition (DVA) of 25 percent within the same period, escalating to 50 percent within 5 years from the date of issuance of approval letter by the Ministry of Heavy Industries.
The policy has been unleashed to boost the local EV manufacturing in the country by magnetizing the top EV firms such as BYD, Tesla, VinFast, and others. Business Standard also reported that “there will be no additional benefits for existing carmakers. Benefits of import duty, subject to certain local commitments, are for all new investments,” the official said.
