SMEC To Offer Incentives Only To New Investments For Electric Cars

ENA Sectors 2024-06-04 14:11:16 New Delhi, Jun 4 (KNN) The Indian government's newly announced Scheme for Manufacturing of Electric Cars (SMEC) will offer incentives solely to automakers that establish new greenfield electric vehicle manufacturing facilities through fresh investments, senior officials have stated. The scheme, intended to draw major players like Tesla and other high-end EV brands, allows manufacturers to initially import EVs at reduced duties while they set up domestic production capabilities over a three-year period after receiving approval, reported ET. However, benefits will not be extended retroactively to existing facilities or prior investments, officials clarified. The required investments must be in a new plant from the approval date onward, said one senior official. This stipulation aims to accurately assess localisation levels without commingling EV and conventional vehicle production. International automakers with a presence in India, such as Volkswagen-Skoda and Hyundai-Kia who have expressed interest, would be eligible provided they establish dedicated EV plants under the scheme's purview. In contrast, Vietnam's VinFast, which has commenced a $500 million plant in Tamil Nadu, may not qualify unless it temporarily halts that investment to reapply under SMEC guidelines. Final implementation details are still being formulated, with the government expected to open the scheme for applications over the next three months after issuing formal procedures. The SMEC initiative underscores India's ambitions to emerge as a global EV manufacturing hub. (KNN Bureau) 38061 https://knnindia.co.in/news/newsdetails/sectors/smec-to-offer-incentives-only-to-new-investments-for-electric-cars 2024-06-04 14:11:16 knnindia.co.in SMEC To Offer Incentives Only To New Investments For Electric Cars