No restrictions on car imports from China, under new EV policy for duty concessions
After announcing a program to encourage global electric car manufacturers with tariff discounts, top authorities have clarified that imports from any jurisdiction, including China, will not be restricted.
The Secretary for Department for Promotion of Industry and Internal Trade Rajesh Kumar Singh spoke to CNBC-TV18 and said "There is no restriction on import from China per say. BYD vehicles are already on roads after paying duties. Only restriction that exists is on investments from land border countries. FDI from China is difficult, imports are theoretically possible under present regime, I cannot comment on what happens in future. Under existing policy regulations there is no restriction on imports from China as long as companies pay duties and meet domestic value addition criteria."
India's new electric vehicle manufacturing policy provides duty reductions ranging from 100 to 15 percent for fully constructed electric automobiles with a minimum financial commitment of Rs 4,150 crore. The applicant must present a bank guarantee for an equivalent sum, which will be forfeited if the firm does not reach 25 percent domestic value addition and commence production within three years. Every candidate must generate a 50 percent domestic value addition within five years of entering India.
The official also stated that the new electric vehicle manufacturing policy is a balanced one and has received good response from different stakeholders, including those who were opposed to the policy earlier.
Speaking about the possibility of Tesla availing duty concessions under the new policy, the secretary said, "I will only say that policy has been well received by companies outside India and global companies already present in India."
Singh also said that the government is expecting some electric car makers to make an announcement soon, but declined to name any entity. "I will leave it to the companies to make their own commercial business announcements," he said.
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