India set to be destination for auto manufacturing
The Government has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs) for a minimum investment of Rs.4,150 crore per investor.
To encourage the global manufacturers to invest under the Scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of US$35,000 at reduced customs duty of 15% for a period of 5 years from the Application Approval Date.
As such, the scheme is strategically crafted to position India as a global hub for electric vehicle manufacturing, the Ministry of Heavy Industries (MHI) said on 2 June.
This landmark initiative is aligned with India’s national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact.
It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation
The Scheme shall help to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. The Scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of “Make in India”.
Minister H.D. Kumaraswamy said at a press conference, “The Ministry of Heavy Industries has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles.
“This landmark initiative aligns with India’s national goals of achieving Net Zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation.”
It also provides policy environment for leading global and domestic players to establish long-term manufacturing footprints in the country.
Through calibrated customs duty concessions and clearly defined domestic value addition (DVA) milestones, the scheme strikes a balance between introducing cutting-edge EV technologies and nurturing indigenous capabilities.
By mandating domestic value addition targets the scheme will further boost the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives, while empowering both global and domestic companies to become active partners in India’s green mobility revolution, the Minister said. fiinews.com
