Inicio Policity and Regulation India’s new EV policy allows imports from any country, including China: Official

India’s new EV policy allows imports from any country, including China: Official

India's new EV policy allows imports from any country, including China: Official

India has no restrictions on the import of electric vehicles from any country, including China, under a new EV policy, a senior government official told a TV channel on Tuesday.

Last month, the Indian government approved the new EV policy, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million.

The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government.
At present, cars imported as completely built units attract customs duty ranging from 70-100 per cent, depending on the engine size and cost, insurance and freight value less or above USD 40,000.

The govt later said that the policy will not impact domestic players and on the contrary, expand the Indian electric vehicles market.

«We are not trying to, you know, tailor a package for anybody. This is open to everybody. The idea is to kickstart the four- wheeler e-car manufacturing in India, with very stringent kind of value-addition norms, while also ensuring that we allow imports in a very limited quantity. we will be allowing only 8,000 for a company in a year and a maximum cap of 40,000. It’s not zero (duty,» Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh said last month.However, a report of think tank Global Trade Research Initiative (GTRI) warned that the new EV policy may lead to large-scale entry of Chinese auto firms in the local market.The GTRI report said that in the «next few years, every third electric vehicle and many passenger and commercial vehicles on India roads could be those made by Chinese firms in India alone or through Joint Venture with Indian firms».

Notably, Chinese EV giant BYD has already entered the Indian market and has plans to cover 90 per cent of the market this year itself. Last year in November, China’s largest automaker SAIC Motor inked a joint venture (JV) agreement with the JSW Group to accelerate the transformation and growth of MG Motor in India.

Many experts, however, backed the new electric vehicle policy saying that it help the country become a global manufacturing hub for future mobility solutions.

«The policy not only aims to attract global EV majors to invest in India but also emphasises a significant Domestic Value Addition (DVA) criteria, ensuring the creation of a robust supply-side ecosystem,» Automotive Component Manufacturers Association (ACMA) President Shradha Suri Marwah told PTI last month.

Icra Senior Vice President and Group Head — Corporate Ratings — Shamsher Dewan said the policy would help access global technologies, expand the product range, and improve cost competitiveness, all of which would facilitate enhanced EV adoption.

«Further, countries that have been front-runners in EV adoption have also developed a local vendor ecosystem. This policy is a step in the right direction and would aid in increasing EV components localisation in India, which is currently at 30-40 per cent,» Dewan stated.

With agency inputs