Latest news with #e-4W
NDTV
3 days ago
- Automotive
- NDTV
New Electric Car Scheme Offers Import Tax Cuts To Makers For Local Production
New Delhi: The government will significantly lower import tax for foreign automakers that pledge to invest in domestic electric vehicle (EV) production, as it looks to strengthen local manufacturing and draw in global industry leaders. Automakers will be permitted to import up to 8,000 electric vehicles at a reduced duty rate of 15 per cent, compared to the current 70–100 per cent, provided they commit to investing Rs 4,150 crore in local EV manufacturing, according to the new EV policy notified by the government. They will be required to begin operations at their manufacturing facilities in India within three years of receiving approval and must meet specified local content requirements, according to the notified guidelines under the Scheme to Promote Manufacturing of Electric Passenger Cars in India. The government on Monday notified guidelines to give effect to the Scheme, paving the way for electric car makers to apply once the application window opens. Officials said the application window may open in a couple of weeks for at least 120 days. The Scheme was notified on March 15 last year by the Heavy Industries Ministry. "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 per cent 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," an official statement said. The maximum duty foregone per applicant has been capped at Rs 6,484 crore on the investment made under the Scheme. The minimum investment commitment in India to be made by an applicant during a 3-year window of Rs 4,150 crore (about USD 500 mn), the Heavy Industries Ministry said. The applicant is required to set up a manufacturing facility and commence operations for the manufacturing of eligible products -- e-4W within a period of 3 years from the application approval date. Expenditure incurred on new plant, machinery, equipment and associated utilities, engineering research and development (ER&D) would be eligible for availing investment-linked benefits under the scheme. However, expenditure on land will not be considered, although new buildings of the main plant and utilities will be considered as part of the investment, provided it does not exceed 10 per cent of the committed investment. A minimum domestic value addition (DVA) of 25 per cent has to be achieved within 3 years and a minimum DVA of 50 per cent must be achieved within 5 years from the date of issuance of the approval letter for applicants under the scheme. The expenditure incurred on charging infrastructure would be considered up to 5 per cent of the committed investment. The applicant's commitment to set up manufacturing facilities, achievement of DVA and compliance with conditions stipulated under the scheme shall be backed by a bank guarantee from a scheduled commercial bank in India, equivalent to the total duty to be foregone, or Rs 4,150 crore, whichever is higher. The window for receiving applications through the notice inviting applications will be for a period of 120 days (or more). Further, the Ministry of Heavy Industries shall have the right to open the application window, as and when required till March 15, 2026. A non-refundable application fee of Rs 5,00,000 will be payable by the applicant while filing the application form. To qualify and receive benefits under the scheme, an applicant is required to have a global group revenue from automotive manufacturing of a minimum Rs 10,000 crore. Moreover, the global investment of a company or its group companies in fixed assets must be at least Rs 3,000 crore, based on the latest audited annual financial statements at the time of filing the application.
India Gazette
4 days ago
- Automotive
- India Gazette
Government notifies guidelines for scheme to promote manufacturing of electric passenger cars in India
New Delhi [India], June 2 (ANI): The Government of India, under the visionary leadership of Prime Minister Narendra Modi, has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs), said a statement from Ministry of Heavy Industries on Monday. This landmark 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 issuedNotification 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 15th March 2024. The Department of Revenue, Ministry of Finance had also issued the notificationon 15th March 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 Schemeshall help toattract 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 per cent for a period of 5 years from the Application Approval Date. Approved applicants would be required to make minimum investment of Rs 4,150 crore in line with the provisions of the scheme. During the press conference, Union Minister H D Kumaraswamy said, 'Under the visionary leadership of PM Modi, the Ministry of Heavy Industries has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles. This landmark initiative aligns 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.' 'The scheme is strategically crafted to position India as a global hub for electric vehicle manufacturing. With a minimum investment threshold of Rs 4,150 crore, it provides an enabling policy environment for leading global and domestic players to establish long-term manufacturing footprints in the country. Through calibrated customs duty concessions and clearly defined domestic value addition (DVA) milestones, the scheme strikes a balance between introducing cutting-edge EV technologies and nurturing indigenous capabilities,' he added. 'By mandating domestic value addition targets the scheme will further boost the 'Make in India' and 'Aatmanirbhar Bharat' initiatives, while empowering both global and domestic companies to become active partners in India's green mobility revolution,' said Kumaraswamy. (ANI)
India.com
4 days ago
- Automotive
- India.com
Bad news for Tesla lovers in India as world's richest man Elon Musk….
Global EV leader Tesla has expressed interest in setting up showrooms in India but is not interested in manufacturing cars in the country, Union Heavy Industries Minister H D Kumaraswamy stated on Monday. Meanwhile, US President Donald Trump remarked that it would be 'unfair' to the United States if Tesla were to establish a factory in India to bypass the country's tariffs. 'Mercedes Benz, Vokswagen, Skoda, Hyundai, Kia all these companies have already shown interest,' Kumaraswamy told reporters here. 'Tesla… They are more (interested) only to start showrooms. They are not interested to (start) manufacturing in India,' Kumaraswamy told reporters here. The minister made the remarks at a press conference to announce the unveiling of guidelines for the Scheme to Promote Manufacturing of Electric Cars in India. 'So far they (Tesla) have not shown interest. Tesla representative only participated in the first round of stakeholder discussions for the Scheme to Promote Manufacturing of Electric Cars in India. The company's representative was not part of the second and third round of the stakeholder deliberations,' an official told PTI. Tesla CEO billionaire Elon Musk had said in April last year that his visit to India has been delayed due to the company's heavy obligations. Global automobile makers including Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest in manufacturing electric cars in India, Union Heavy Industries Minister H D Kumaraswamy said on Monday. The said companies have expressed interest during the stakeholder discussions between the government and the industry regarding the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India', the detailed guidelines for which were unveiled by the minister. While the scheme was notified on March 15 last year, its guidelines were issued on Monday. 'Mercedes Benz, Vokswagen, Skoda, Hyundai, Kia all these companies have already shown interest,' Kumaraswamy told reporters here. 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 (cost, insurance and freight) value of USD 35,000 at reduced customs duty of 15 per cent 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. The window for receiving applications through the Notice Inviting Applications will be for a period of 120 days (or more). Further, the Ministry of Heavy Industries shall have the right to open the application window, as and when required till March 15, 2026. (With Inputs From PTI)
