Govt. to issue new investment guidelines for foreign EV makers

EV makers that are already present in the country will not have to float new subsidiaries.

According to a media report, the government of India is set to issue fresh guidelines for investments under the new EV policy. As a result, proposals from EV makers from certain countries would have to face more intense scrutiny.

Quoting a government official, the report states that applications by auto companies from countries that share a land border with India, such as China, will have to go through “much more onerous scrutiny.” He went on to add that those already present in the country will not have to float new subsidiaries to apply under the policy.

The new guidelines will include details on portal links and the project monitoring agency. The official said that the companies can apply for an import license for a certain number of EVs. However, in order to qualify, they will have to commit to investments prescribed by the policy.

The government approved a new EV policy on March 15, 2024. Under the new policy, companies will have to invest a minimum of Rs 4,150 crore in the country. They will have 3 years to set up a local manufacturing unit for EVs with at least 25% localization.

Companies will be allowed to import 8,000 EVs per year at a lower import duty of 15% on cars costing $35,000 and above, which is significantly lower than the 70-100% currently levied on imported cars.

Source: ET Auto