Latest news with #SchemetoPromoteManufacturingofElectricPassengerCarsinIndia
India Today
6 hours ago
- Automotive
- India Today
India slashes EV import duties to 15% to attract global carmakers
In a major move to boost electric vehicle (EV) manufacturing and adoption, the Ministry of Heavy Industries has unveiled a new policy titled 'Scheme to Promote Manufacturing of Electric Passenger Cars in India' (SPMEPCI). The initiative significantly reduces import duties on electric vehicles from 110 per cent to just 15 per cent, aiming to lure global automakers into investing in India's EV incentivesTo benefit from the reduced import tariff, automakers must commit to investing at least Rs 4,150 crore (approximately $500 million) within three years toward manufacturing electric cars in India. The policy allows manufacturers to use existing production facilities, although previous investments and land/building costs are not counted towards the mandatory investment return, the reduced 15 per cent customs duty will apply for a five-year period, capped at 8,000 imported electric vehicles annually—provided each unit is priced above $35,000 (approx Rs 30 lakh). The annual quota is flexible, allowing carryover of unused units, and total benefits are limited to Rs 6,484 crore or the actual investment made—whichever is targets and milestones Participating carmakers must meet a series of performance targets, including:Annual turnover of Rs 2,500 crore by the second year,Rs 5,000 crore by the fourth year, andRs 7,500 crore by the fifth addition, companies must:Set up local manufacturing facilities by the third year,Achieve 25 per cent local value addition by the third year, andIncrease this to 50 per cent by the fifth investment expenses include R&D, machinery, and charging infrastructure (up to 5 per cent of the total investment). Land and buildings used directly for manufacturing can account for up to 10 per Industries Minister HD Kumaraswamy confirmed that several global automakers—Hyundai, Kia, Mercedes-Benz, Skoda, and Volkswagen—have already expressed interest in availing the scheme's Tesla is unlikely to participate in local manufacturing. Despite its long-awaited entry into the Indian market in 2025, the American EV company reportedly plans only to open showrooms and import vehicles—making its offerings subject to the full 110 per cent import duty."Tesla is not expected to invest in manufacturing here. They are likely to begin with showrooms only,' Kumaraswamy requirementsTo apply for the scheme, carmakers must meet the following global financial benchmarks:A minimum of Rs 10,000 crore in annual automotive revenueAt least Rs 3,000 crore in fixed online portal for SPMEPCI applications is expected to go live soon, with approval letters to be issued from August 2025 to Auto Today Magazine
The Hindu
a day ago
- Business
- The Hindu
Falling short: on India's EV journey
On June 2, India took a turn for the better in its transport electrification journey by offering a concessional import duty of 15% on completely built-up units. This is contingent on the EV manufacturer investing a minimum of about ₹4,150 crore over three years to localise manufacturing in India, with a base domestic value add of 25% in three years, going up to 50% in another two years. The notification, under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) announced in March 2024, allows for a maximum import of 8,000 completely built units annually for each manufacturer for five years. The SPMEPCI adds to the bouquet of policies that attempts to boost EV adoption and manufacturing. However, these policies put together fall short of addressing a pressing issue in India's journey to decarbonise and transform mobility — technology transfer. India began this journey in 2015, about five years later than most large economies. An outlay of ₹895 crore for the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) scheme, for five years, expanded to ₹10,000 crore in 2019. China announced its ambitious New Energy Vehicle subsidy programme in 2009, which, coupled with mandatory joint venture manufacturing of EVs until 2022, enabled technology transfer. In addition, a reduced import duty on EVs (25% in 2010 to 15% in 2018), and cumulative incentives of about $230 billion in the past 15 years — the most by any country — enabled China to achieve the highest global EV adoption rate. This also supported rapid charging infrastructure deployment, making China the largest producer and consumer of EVs. The U.S. began this journey in 2010 with an initial outlay of $25 billion for its Advanced Technology Vehicles Manufacturing Loans Program. This was greatly expanded under the Biden administration's Inflation Reduction Act. But its EV adoption rate is much lower than China's. In 2024, out of 17 million global EV car sales, China alone accounted for 11.3 million, followed by Europe with 3.2 million, the U.S. with another 1.5 million, and the rest of the world accounting for the remainder. China's vertical integration of battery manufacturing, from mining, processing to assembling, has aided economies of scale with competitive pricing of EVs against conventional ICE vehicles. For now, the 25% DVA that India could aim for under the just announced scheme would be repurposing locally made auto components meant for ICE vehicles to EVs and layering it with Software-as-a-service. But to obtain the crucial technology for the heart of the EV — its battery — India must replicate its approach to localising ICE manufacturing, which is to mandate joint ventures with local ICE or EV makers, and gradually allow for a complete open market.
NDTV
3 days ago
- Automotive
- NDTV
Elon Musk's Tesla "Not Interested" In Manufacturing In India: Minister
New Delhi: Tesla, the Elon Musk-owned electric vehicle giant, is not interested in manufacturing in India and is keen on opening showrooms, Union Minister for Heavy Industries HD Kumaraswamy said on Monday. The remarks came amid the government's push to promote domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs). " are only to start showrooms. They are not interested in manufacturing in India," the minister said. Heavy Industry Secretary Kamran Rizvi, however, added, "The real intent we'll know when we open the application". "If the company still feels like investing. What the minister is telling is about what come and tell informally," he said. The minister added that many European companies like Hyundai, Mercedes Benz, Skoda and Kia have shown interest in manufacturing units in India under the new EV policy. Earlier, there were reports that Tesla was interested in importing Tesla cars into India and subsequently selling them through their showrooms in India. Tesla boss Musk had in the past indicated that he was interested in investing in India, but "high import duty" structures were a bone of contention. Tesla's intention to come into India had intensified after India announced its new EV policy, under which import duty was reduced to 15 per cent and many incentives were provided for setting up a manufacturing plant in India. Meanwhile, Elon Musk's father, Errol Musk, who is in India, appeared keen on Tesla's presence in the country. "That is something that I have to be careful not to say too much about. Tesla is a public company. It's not you look at India and the population, the kind of people you've got here, the energy and everything and when I hear that, with great respect, BYD and various others are coming in, and Tatas and Mahindra are making great cars, I'm very inclined to say, wait, why aren't we having Teslas here. But I can't say too much. That's just a personal point of view," he said. He was answering a query about plans for Tesla's presence in India. The central government on Monday notified guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India. The central government approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs). The initiative is aligned with India's national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation. Ministry of Heavy Industries (MHI) has issued a notification regarding detailed guidelines for the "Scheme to Promote Manufacturing of Electric Passenger Cars in India" (SPMEPCI / the Scheme)MHI had issued the Scheme notification on March 15 2024. The Department of Revenue also issued the notification on March 15, 2024, for reduced import duties in line with the provisions of the scheme. The notice for inviting applications under the Scheme is proposed to be notified shortly, whereby the prospective applicants would be able to submit online applications. The scheme shall help to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. The Scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of "Make in India". To encourage the global manufacturers to invest under the Scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced customs duty of 15% for a period of 5 years from the Application Approval Date. Approved applicants would be required to make a minimum investment of Rs 4,150 crore in line with the provisions of the scheme.
Hans India
3 days ago
- Automotive
- Hans India
Move to make India global EV hub
New Delhi: The Central government on Monday notified guidelines for its forward-looking scheme to enable fresh investments from global manufacturers in the electric cars segment and promote India as a global manufacturing hub for e-vehicles. To encourage global manufacturers such as US tech giant Tesla to invest under the scheme, the approved applicants will be allowed to import completely built-in units (CBUs) of electric four-wheelers with a minimum CIF (cost insurance and freight value) of $35,000 at reduced customs duty of 15 per cent for a period of 5 years from the date that the application is approved. Union Heavy Industries Minister H D Kumaraswamy said on Monday that Mercedes Benz, Skoda-Volkswagen (VW), Hyundai, and Kia have shown keen interest in manufacturing their electric vehicles (EVs) in India. The minister further said that the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will open soon. Approved applicants would be required to make a minimum investment of Rs 4,150 crore in line with the provisions of the maximum number of e-4Ws allowed to be imported at the reduced duty rate will be capped at 8,000 units per year. The carryover of unutilised annual import limits would be permitted. According to the notification, the maximum number of EVs to be imported under this scheme will be such that the maximum duty foregone per applicant will be limited to Rs 6,484 crore, or the committed investment of the applicant of a minimum of Rs 4,150 crore, whichever is lower. Expenditure incurred on new plant, machinery, equipment and associated utilities, and engineering R&D would be scheme shall help to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. The scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of 'Make in India', according to the official landmark initiative is aligned with India's national goals of achieving net zero by 2070.
Time of India
3 days ago
- Automotive
- Time of India
Merc, Skoda-VW may make in India, Tesla to stay away: Musk's electric car co only interested in setting up sales outlets, says Kumaraswamy
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: India Monday unveiled the guidelines for investment under its electric vehicle scheme that will allow carmakers to import 8,000 units at concessional import tariff if they set up a manufacturing facility in the country. The window for receiving formal requests will open soon. Elon Musk 's Tesla is keen on setting up sales outlets but not to make cars in India while Mercedes Benz, and Skoda-Volkswagen, and Hyundai, and Kia have shown interest in manufacturing EVs under the scheme, Union Heavy Industries Minister HD Kumaraswamy said Monday.'This will enhance India's status as a global EV manufacturing hub… applications window for seeking sops to open shortly,' the minister said, adding that beneficiaries will need to start domestic production within three under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) are contingent on a company agreeing to invest and manufacture EVs in the country. Approved applicants will be allowed to import Completely Built-up Units (CBUs) of electric four wheelers with a minimum import value of $35,000 at reduced customs duty of 15% for five years and would be required to make a minimum investment of Rs 4,150 Mercedes Benz, Skoda-Volkswagen (VW), South Korean Hyundai, and Kia have held talks with the Centre regarding the scheme, Kumaraswamy said shortly after norms for the scheme were notified.'The future of mobility will be electric. SAVWIPL is closely monitoring the development of EV-related policies in India and is thoroughly assessing their implications. Based on this, we define the appropriate next steps in line with our longterm strategy,' a Skoda Auto Volkswagen India Pvt Ltd spokesperson said.'We fully support and remain committed to initiatives that lead to a sustainable and self-sufficient battery electric vehicle ecosystem in India,' the spokesperson added. Mercedes, Kia and Hyundai did not respond to queries from ET on their plans with regard to the is said to be testing the waters for its electric vehicles (EVs) in India by importing some cars. The company has been in discussions with the Indian government and has in the past flagged its high import tariffs for cars. Founder Elon Musk was expected to visit India in April last year and announce the company's plans, but the trip was called to a query on Tesla's possible India plans, Kumaraswamy said the US-headquartered EV maker has not shown interest in manufacturing domestically. 'Tesla only wants to open showrooms and sell imported cars,' he about the impact of US President Donald Trump 's newest plan to raise import tariffs on steel, Kumaraswamy said it will have minimal impact on announced in May last week that tariffs on imported steel and aluminium will double to 50% after June 4. 'The only concern is for consignments on the way since they will attract higher duty if they don't reach before June 4,' he said.
