The Ministry of Heavy Industries (MHI) on March 15, 2024, issued the scheme to promote manufacturing of Electric Passenger Cars in India.
The following has been stated: -
•India is currently the world’s 3rd largest automobile market and one of the fastest-growing automotive markets in the world. The current market size of the automotive sector is Rs.12.5 lakh crore (USD151 billion) and the sector is expected to cross Rs.24.9 lakh crore (USD 300 billion) by 2030. The automotive sector contributes over 7.1% to India’s GDP.
•The Government of India has taken several initiatives to promote the growth of the EV industry. These include the FAME India schemes and the two production-linked incentive (PLI) schemes.
•This scheme shall help to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. The scheme will also help put India on the global map for manufacturing EVs, generate employment, and achieve the goal of “Make in India”.
•Key Highlights of this Scheme:
(i)The approved applicants will set up manufacturing facilities in India with a minimum investment of Rs. 4,150 crores (USD 500 million), for manufacturing of e-4W.
(ii)The manufacturing facility(ies) shall be made operational within a period of 3 years from the date of issuance of the approval letter by MHI and achieve a minimum DVA of 25% within the same period.
(iii)The approved applicant will be required to achieve a minimum DVA of 50% within a period of 5 years from the date of issuance of the approval letter by MHI.
(iv)The applicant will be allowed to import CBUs of e-4W manufactured by them at a reduced customs duty of 15% subject to the conditions as per this Scheme.
(v)Under this scheme, EV passenger cars (e-4W) can initially be imported with a minimum CIF value of USD 35,000, at a duty rate of 15% for a period of 5 years from the date of issuance of an approval letter by MHI. The maximum number of e-4W allowed to be imported at the aforesaid reduced duty rate shall be capped at 8,000 nos. per year. The carryover of unutilized annual import limits would be permitted.
The detailed notification is given in the document attached below.
[Notification No. S.O. 1363(E)]
