India's new electric vehicle policy, which allows direct import of electric vehicles subject to conditions at low duty, is likely to attract more foreign companies to invest. Elon Musk's Tesla is leading the American electric vehicle manufacturer. The policy will help Chinese company BYD, Vietnam's Winfast and American electric vehicle startup Fisker to speed up their entry into the Indian market.
There are also indications that discussions are going on with some companies from Europe, South Korea and Japan. The new policy aims to make India a global electric vehicle manufacturing hub. The policy also protects domestic companies with conditions such as investment of at least Rs 4,150 crore, manufacturing center within three years, 25 percent in three years and 50 percent in five years of components from India.
Attractive factors
Third largest automobile market in the world. India's efforts to reduce fossil fuel use and hence pollution, progress in infrastructure for electric vehicles in a short period of time, decisions to encourage domestic production of advanced chemical cells and vehicle components, low GST All these factors make the Indian market attractive to global companies.
And not just Tesla
Tesla's main demand was to reduce the duty on direct import of the vehicle. India was in the position that it was not ready for this without starting production. Under the new policy, imports are allowed at 15 percent duty for up to five years. This is expected to speed up Tesla's entry into India. A Vietnamese company, Winfast, also demanded a reduction in import duty.
Winfast has already announced an investment plan of Rs 4,000 crore for the factory in Tamil Nadu. BYD, a Chinese company, is experimenting with the Indian market. is in the scene. Another one is Fisker, an electric vehicle startup company from America. Based in Hyderabad, the company registered in April 2023 SUV. The vehicle model is being tested in India. In the new situation, it is indicated that the company will speed up the production process in India.
These are the benefits
With the arrival of international companies like Tesla, Indian consumers will have access to new technologies. Infrastructure development for electric vehicles will accelerate. Increasing competition in the domestic market will improve the quality and comfort of vehicles. With the new investment, employment opportunities will also increase. Under the terms of the policy, new opportunities will open up for auto component manufacturing companies.