An official, speaking on Friday, hinted at an imminent second round of consultations with stakeholders, following a successful initial consultation phase conducted by the Ministry of Heavy Industries last month. Notably, the new policy framework offers a streamlined application process, enabling companies to secure import licenses for a predetermined number of EVs, contingent upon their commitment to substantial investments.

March 15 marked a pivotal moment with the government's approval of the electric vehicle policy, signaling a paradigm shift in India's automotive landscape. This landmark initiative promises duty concessions to companies willing to establish manufacturing units within the country, subject to a minimum investment threshold of USD 500 million. The primary objective is to allure major global players, notably Tesla from the United States, towards investing in India's burgeoning EV ecosystem. Under the policy's provisions, companies are afforded a three-year grace period to establish manufacturing facilities and commence commercial production of e-vehicles, with a stipulated target of achieving 50 percent domestic value addition within five years.

Further bolstering the attractiveness of EV manufacturing, the policy extends incentives for importing a limited number of EVs at reduced customs/import duty rates. Notably, vehicles valued at USD 35,000 and above will be eligible for a reduced duty rate of 15 percent for a duration of five years, starting from the approval date issued by the Ministry of Heavy Industries (MHI). For electric four-wheelers (e-4Ws), the policy imposes an annual import cap of 8,000 units at the reduced duty rate, with provisions for carrying over any unused import quotas, thereby fostering a conducive environment for sustainable growth in the EV sector.