Government to encourage local EV manufacturing
In a move to promote domestically manufactured electric vehicles (EVs), the Indian government is developing a policy to subsidise local EV production, fostering fair competition within the automotive industry. This initiative is expected to reduce the cost of battery electric vehicles and potentially stimulate economic growth and job creation in the country.
The Department for Promotion of Industry and Internal Trade (DPIIT), operating under the Ministry of Commerce and Industry, is actively engaged in discussions to implement an incentive program for electric four-wheeler manufacturers. Government officials are currently deliberating the minimum investment criteria that manufacturers must meet to qualify for benefits under this new scheme, as they assess the overall budgetary requirements.
"Unlike FAME II (Faster Adoption and Manufacturing of Electric Vehicle), which is an upfront subsidy paid to consumers, this will be a manufacturing incentive. The government is looking at extending incentives to vehicle manufacturers linked to the investments made by them to manufacture electric cars locally," said a government official.
Minister of Commerce & Industry, Piyush Goyal, has recently underscored the government's commitment to creating a level playing field in the automotive industry, enabling all car manufacturers interested in the emerging Indian EV market to participate.
Several automakers, including Maruti Suzuki, Hyundai, Kia, Toyota, Tata, Mahindra, Volkswagen, Skoda, and Stellantis, among others, which have plans to produce EVs in India, are likely to benefit from this program. It could also prove advantageous for brands like Tesla if they decide to initiate local EV production. Kia has recently announced its intention to establish India as its hub for EV production targeting emerging automotive markets.
Source - Economic Times
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