The government is in consultations with both domestic and foreign stakeholders to formulate a policy to boost local manufacturing of electric vehicles (EVs), said a senior government official.

“Consultations on new EV policy to boost investment and manufacturing are underway. Talks understand and aim to bring all countries on board, including Italians, Korean, and of course, Indian car makers. It should be for everyone,” said the official.

The statement on the proposed EV policy is important as US car major Tesla is reportedly in talks with the government for adequate policy support for setting up its manufacturing facilities in the country.

The government is not yet ready to set a timeline for the proposed EV policy as diverse interests have to be accommodated, said another source.

‘no proposal yet’

Earlier this month, in response to a query in Parliament on possible sops for EVs, Minister of State for Commerce and Industry Som Parkash said there was no immediate proposal. “Presently, there is no proposal either to provide exemption from local value addition cost or to provide subsidy on import duty on import of electric vehicle in India,” he said.

However, some official sources, on condition of anonymity, later clarified that Tesla’s demands for sops, including import duty cuts, were still being considered, although nothing was immediately expected. Officials also said that the sops would not be for any particular manufacturer but for the industry in general.

There is not much enthusiasm amidst domestic car manufacturers, such as Tata Motors and Mahindra & Mahindra, towards import duty cuts on EVs sought by foreign companies as they are concerned about losing business.

The EV policy under consideration is likely to take the interests of all stakeholders into consideration, the official added.

EV penetration in the Indian automobile market is quite low with electric cars accounting for just 1.3 per cent of total car sales in the country in 2022, per industry estimates.

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