A senior government official affirmed India’s openness to the import of electric vehicles (EVs) from any country, including China, under the new EV policy in a recent interview with CNBC-TV18. Rajesh K Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), highlighted the robust response from global EV manufacturers to the policy. He further emphasized the importance of quarterly disbursement of production-linked incentives (PLI) to all government departments.
Singh clarified that there are currently no restrictions on imports from China, citing the presence of BYD vehicles on Indian roads after payment of relevant import duties. However, he noted that restrictions primarily lie on the investment side, particularly regarding foreign direct investment (FDI) from land border countries, which poses challenges.
The government’s recent announcement of a new policy aims to incentivize domestic manufacturing of EVs. Under this policy, manufacturers committing to investments of at least Rs 4,150 crore and initiating production within three years will benefit from reduced import taxes on certain EVs. These manufacturers must also ensure that at least 25 percent of the components used are locally sourced.
Upon meeting these criteria, companies will be permitted to import up to 8,000 EVs annually. Imported EVs priced at $35,000 (approximately Rs 29 lakh) or above will attract a reduced import duty of 15 percent. This move aims to stimulate domestic EV manufacturing while facilitating access to advanced EV technologies from international markets. Presently, import tariffs on cars vary from 70 percent to 100 percent based on their value, underscoring the significance of the revised policy in promoting the adoption of electric vehicles in India.
