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India Holds Consultations On EV Policy Guidelines Ahead Of Potential Tesla Entry

Updated: Apr 19, 2024 01:03:31pm

India Holds Consultations On EV Policy Guidelines Ahead Of Potential Tesla Entry

New Delhi, Apr 19 (KNN) In a significant development aimed at advancing the electric vehicle (EV) sector, the Indian government convened its first consultative meeting with leading automobile manufacturers, on Thursday.

This comes ahead of a highly anticipated visit by Tesla CEO Elon Musk this month, reported IE.

The discussions focused on formulating guidelines to operationalise India's newly unveiled EV policy, involving senior officials from the Ministry of Heavy Industries and the Finance Ministry, as well as executives from major automakers such as Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Volkswagen, Mercedes, and Toyota.

Notably, representatives from Tesla were also present at the meeting, signalling the electric vehicle pioneer's keen interest in the Indian market.

Their participation gains significance in light of the recent policy amendments that allow manufacturers investing over USD 500 million to import a limited number of fully-built EVs at a concessional 15 per cent import duty rate.

“This initial consultation marks the beginning of a process to develop comprehensive guidelines encompassing investments, incentives, and overall ecosystem development for EVs in India,” remarked an industry executive who attended the meeting. More such deliberations are scheduled to take place.

For years, Tesla has sought reduced import duties as a precondition for establishing a manufacturing facility in India. The new EV policy effectively addresses this long-standing demand, potentially paving the way for the company's entry into one of the world's largest automobile markets.

As India accelerates its transition towards electric mobility, the involvement of a global leader like Tesla could catalyse further investments and innovation in the sector.

However, the company will face stiff competition from domestic players such as Tata Motors, which are aggressively expanding their EV portfolios.

(KNN Bureau)


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