ENA Sectors 2024-03-26 14:18:22 <p><span style="font-size:14px"><strong>New Delhi, Mar 26 (KNN)</strong> India has unveiled a major new scheme to promote manufacturing of electric passenger vehicles (EVs) in the country.</span></p> <p><span style="font-size:14px">On Friday, the government issued notifications exempting social welfare surcharge and reducing basic customs duty to 15 per cent on imports of EVs under certain conditions.</span></p> <p><span style="font-size:14px">Global companies with a minimum Rs 10,000 crore auto turnover or Rs 3,000 crore investment can import up to 8,000 EVs priced above USD 35,000 per year for 5 years at 15 per cent duty.</span></p> <p><span style="font-size:14px">However, they must invest a minimum of Rs 4,150 crore in an Indian EV manufacturing plant within 3 years.</span></p> <p><span style="font-size:14px">Additionally, they are required to achieve 25 per cent domestic value addition within 3 years and 50 per cent within 5 years.</span></p> <p><span style="font-size:14px">The duty benefit is capped at Rs 6,484 crore or the committed investment, whichever is the lower amount.</span></p> <p><span style="font-size:14px">Furthermore, companies must provide a bank guarantee against duty foregone.</span></p> <p><span style="font-size:14px">The scheme aims to attract foreign direct investment for EV manufacturing as India targets growth in this emerging sector.</span></p> <p><span style="font-size:14px">It complements existing policies like Faster Adoption and Manufacturing of Hybrid &amp; Electric Vehicles (FAME) and Production Linked Incentive (PLI) schemes for EVs and batteries.</span></p> <p><span style="font-size:14px">While supporting new EV investment, the latest policy limits imports of premium EVs to prevent market disruption.</span></p> <p><span style="font-size:14px">Domestic automakers believe allowing limited high-end imports won't significantly impact their business.</span></p> <p><span style="font-size:14px">However, Indian automakers want high duty protection on imported passenger vehicles over USD 40,000 despite lacklustre export performance.</span></p> <p><span style="font-size:14px">Experts suggest improving competitiveness could benefit the industry more than import duties.</span></p> <p><span style="font-size:14px">The government will notify complete procedural guidelines within 120 days.</span></p> <p><span style="font-size:14px">It expects a positive response given projected growth in the global EV market.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 37160 https://knnindia.co.in/news/newsdetails/sectors/india-rolls-out-incentives-to-attract-ev-manufacturing-investment 2024-03-26 14:18:22 knnindia.co.in