For all those gearheads who are fans of EV GOD, Elon Musk should paint the town road as Tesla’s entry into the Indian Market is the new jackpot that we hope to hit by the new EV Policy of the Indian Government. According to reports, the Indian government has unveiled a brand-new EV policy initiative. The government hopes to increase domestic EV manufacturing with this new policy. Additionally, it seeks to advance "Made in India" goals.
What does the EV Policy state?
To import electric vehicles into India, car manufacturers will need to invest a minimum of $500 million and set up local manufacturing facilities within three years of the new policy.
They also need to ensure that a sizable percentage of the components are sourced domestically. The Indian government has set goals to source 25% of parts domestically within three years and 50% within five years. By including this clause, the government hopes to strengthen domestic production capacities. Another significant feature of the new EV policy is this. A provision in the new policy permits businesses to import up to 8,000 fully built-up (CBU) electric vehicles per year. A 15% reduced import duty will apply to the first 8,000 cars each year that cost more than $35,000. Import taxes on imported automobiles ranged from 70% to 100% under the previous tax system.
Can we expect Tesla’s Arrival in India?
Experts in the field believe that Tesla, led by CEO Elon Musk, has long been considering entering the Indian market. The new EV policy's implementation has now made it possible for Tesla to make its debut in the nation. Tesla will undoubtedly benefit from the new EV policy's implementation. Tesla's entry into India will be made easier by this new EV policy.
Tesla has previously had its requests to lower import taxes on its electric vehicles turned down by the Indian government. The business had a difficult time obtaining advantageous tariff agreements. But now that the new EV policy has been implemented, Tesla will be making an appearance in India.
Will other EV brands also benefit from it?
Although the news has focused on Tesla's possible entry, numerous analysts have pointed out that VinFast, a Vietnamese EV manufacturer, will also gain from this new EV policy. The business recently declared its intention to invest $2 billion in India.
In Tamil Nadu, it has even started building its first factory. Furthermore, several international companies are considering making investments in India's expanding electric vehicle (EV) market, including Foxconn, MG Motor, Ford, and Volkswagen.
We can say that To protect the interests of the domestic industry, these two ( Mahindra & Mahindra and Tata Motors ) businesses have been advocating against lowering import taxes on electric vehicles as the new policy will heavily affect these two automakers the most. Nonetheless, the government has declared that levelling the playing field is the main goal of the new EV policy.
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