Government issues guidelines to promote domestic EV manufacturing

The initiative is part of the country’s broader strategy to reach net zero emissions by 2070, promote sustainable transport, spur economic growth, and cut environmental harm. It is also intended to position India as a leading global hub for automotive manufacturing and innovation.

An official invitation for applications is expected shortly, allowing interested manufacturers to apply online.
The scheme aims to attract foreign investment from global EV makers and enhance India’s appeal as a destination for electric vehicle production. It is expected to contribute to job creation, expand the country’s EV ecosystem, and support the government’s ‘Make in India’ campaign.

As part of the incentive package, approved applicants will be allowed to import completely built electric four-wheelers (CBUs) with a minimum CIF value of $35,000 at a reduced customs duty of 15% for a period of five years from the date of approval.

To qualify, applicants must commit to a minimum investment of ₹4,150 crore, as stipulated under the scheme.

Also read: Don’t expect Tesla to manufacture in India, says Heavy Industries Minister Kumaraswamy