India's EV Import Duty Slashed

• 16 Mar 2024

On 15th March, Centre unveiled scheme to lower import cost of EVs to 15%, encouraging foreign manufacturers to invest in India.

• Manufacturers required to invest minimum Rs 4,150 crore, set up manufacturing units, achieve 25% localisation in 3 years.
• Policy aims to boost Make in India initiative, promote healthy competition, lower production costs, and reduce trade deficit.
• Customs duty reduced from 100% to 15% for vehicles with CIF value of $35,000 and above.
• Scheme applicable for 5 years, with conditions on investment and production capacity.
• Cap placed on customs duty forgone, with provision for bank guarantee to ensure investment commitment.
• Policy expected to create jobs, lower production costs, reduce oil imports, and have positive environmental impact.
• Industry players welcome move, citing potential for innovation, growth, and job opportunities in EV sector.
• Some domestic players express concerns about uneven playing field, call for adaptation and improvement strategies.