According to an ET article, this arrangement would allow foreign EV Manufacture, like Elon Musk’s Tesla, to analyze the Indian market before investing.
Elon Musk leads Tesla’s India entry: In an intriguing step to help the electric vehicle (EV) industry, India is allegedly planning to adopt an on-tap facility procedure for EV manufacture. This will be part of the upcoming guidelines for the incentive scheme, which was announced last year. According to industry officials, specific regulations will be issued next month, and an extension of the application period is being considered to encourage increased participation and innovation in the EV market.
According to an ET story, this arrangement will allow foreign EV makers, such as Elon Musk’s Tesla, to assess the Indian market before investing. The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC) was introduced in March 2024 but has yet to be implemented. A senior government official informed the Financial Daily that the SMEC guidelines would be completed in two weeks and made public the following month.
Tesla, led by Elon Musk, is seeking retail space and hiring workers to begin selling cars in India. However, the corporation has yet to commit to establishing a local manufacturing site. According to one official, the government may provide multiple application windows for its EV incentive scheme, each lasting 120 days. This means that automakers like Tesla can test the Indian market before requesting subsidies to start production.
Tesla intends to examine demand before making significant manufacture investments. The scheme also encourages the installation of EV assembly lines in existing factories, making it easier for foreign automakers that already have business in India to take advantage of incentives. After the guidelines are issued next month, the government expects to receive applications for subsidies for EV production units.
India established SMEC on March 15, 2024, to encourage investment in domestic electric vehicle manufacturing. Businesses that invest at least $500 million in domestic production can import completely produced electric vehicles costing at least $35,000 at a 15% import duty rate for five years.
Prospective automakers had expressed reservations about the financial investment needed for EV-specific facilities.
Also Read
Suzuki’s EV Strategy: Betting Big on India During Global Slowdown
About The Author
