Government notifies guidelines of scheme to promote manufacturing of electric passenger cars in India

The Government of India has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs). This landmark initiative is aligned with India’s national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth and reducing environmental impact. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation, emphasised an official communique. The 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 of EVs, generate employment and achieve the goal of “Make in India”. To encourage global manufacturers to invest under the scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced Customs duty of 15% for a period of 5 years from the Application Approval Date. Approved applicants would be required to make minimum investment of Rs 4,150 crore in line with the provisions of the scheme. * The approved applicants will be allowed to import CBUs of e-4W manufactured by global group companies with a minimum CIF value of USD 35,000 at reduced Customs duty of 15% for a period of 5 years from the Application Approval Date. * 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 unutilised annual import limits would be permitted. * The maximum number of EVs to be imported under this scheme shall be such that the total duty foregone will be limited to the lower of the following: * The maximum duty foregone per applicant (limited to Rs 6,484 crore), or committed investment of the applicant (minimum Rs 4,150 crore). * Total duty to be foregone shall be limited to lower of Rs 6,484 crore or the investment made under this scheme.

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