The Ministry of Heavy Industries (MHI) has a scheme to promote domestic passenger car production, especially electric vehicles, in a bid to attract global investment and project India as a manufacturing hub for EVs.
Under the scheme, manufacturers must invest a minimum of INR41.5 billion (USD479 million) for three years, file an application and receive MHI approval before being eligibile for benefits, including customs duty concessions on certain imports.
Scheme benefits are:
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- An ability to import completely built-in units of electric four-wheel drive systems (e-4Ws) at a minimum value of USD35,000 at a reduced customs duty of 15% for five years;
- A maximum of 8,000 e-4Ws will be allowed in a year, with the unused limit carried over to the next year; and
- Total duty waived cannot exceed INR64.84 billion or the minimum required investment amount per applicant, whichever is lower.
Online applications for MHI approval will begin soon.
Manufacturers will also be required to achieve a minimum 25% of domestic value addition within three years and 50% within five years from the date of receiving MHI approval. The domestic value-addition criteria ensure Indian capabilities are used in making the country an EV manufacturing hub.
The scheme also aligns with 含羞草社区 goal to reach net zero emissions by 2070 that would also lead to sustainable mobility, economic growth and reduced environmental impact.
