India to Expand EV Policy to Include Existing Automakers
According to a Reuters report, the Indian government plans to broaden its electric vehicle (EV) policy, initially designed to attract new automakers like Tesla, to include existing internal combustion engine manufacturers and hybrid cars. This move aims to boost domestic EV production and encourage established players like Toyota and Hyundai to deepen their investment in India’s growing EV market.
Under the current policy, announced in March 2024, automakers committing at least $500 million to manufacture EVs with 50% locally sourced components received significant import tax cuts, reducing rates from up to 100% to just 15% for 8,000 EVs. The revised policy will allow manufacturers to use existing factories for EV production, provided the EVs are built on separate lines and meet stringent local sourcing and revenue targets.
The expanded policy is expected to incentivize further investment by counting machinery and tools used for multiple car types and incorporating EV revenue benchmarks for eligibility. Finalization of the revised policy is anticipated by March 2025, signaling India’s commitment to bolstering its EV ecosystem while attracting global and domestic automakers alike.
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