India’s Ev policy, which offers important tax cuts for foreign automakers investment in the country, will restric them from using funds spent on charging infrastructure for such relay Manufacturing, A Government Document Shows.
India Last Year Announced A Policy Aimed at Attracting Tesla To manufacture evs in the country and let such carmakers important cars at a 15 percent tarif, from Around 100 percent Now, but only if they invest at least $ 500 million (rous Crore) for a factory.
But the policy will mandate that automakers can count only five percent of their total Ev Investment as Coming from Creation of Charging Infrastructure, even if they spend much more on the power network, according to government documents document detailing draft rule is not pudlic but was sec but
The Government’s Plan Comes Just as Tesla Gets Closer to Entering India with Imported Cars, Having Finalized Two Locations for Showroms. The restriction would upset that automakers who may want to invest a bigger chunk of their plans India investments into Creating Charging Networks, which remain far and more in India.
An Industry Source Privy to Discussions With the Government Said The Call is Being Taken as New Delhi Wants Companies to Prioritise Manufacturing, and Not just just charging networks.
In India’s Nascent Ev Market, Many Buyers have shied Away from Making Purchases Due to Lack of Fast Charges.
“Expenditure incurred on charging infrastructure would be considered up to (a) Maximum five percent of the commissioned investment,” The 47-Page Draft Document from January 2025 Stated.
The government is holding consultations with carmakers and other stakeholders on the draft rules and will finalize them by next month, said a source with direction of the matter of the matter.
India’s Ministry of Heavy Industries, Which is SpearHeading The New Policy, did not respond to an email seeking comment.
Tesla in a Job Advert Last Week Said it is also looking for a “Charging Developer” Wholes “Develop and Manage Pipeline of New Charging” Sites, and select locations for demloents.
The Ev Giant’s Chief Elon musk Put on Hold His Manufacturing Investment Plans for India Last Year, AMID Falling Electric Car Sales Globally.
Tesla’s immediati India plan is to important cars and sell them in India. Musk and Us President Donald Trump However Have Repeatedly Said India’s tarifs for cars are too high.
The new draft rules said companies which commission to India manufacturing will also need to meet a minimum turnover of $ 577 million (roughly Rs. 5,004 Crore) by the end of the foreth year of 86666666666666 Million (roughly Rs. 7,511 Crore) by the fifth year, to be eligible for lower tarifs on up to 8,000 electric cars per year.
If they fail to do so, they will need to pay a penalty of between one percent-three percent of the revenue shortfall.
Other Foreign Automakers like Hyundai and Toyota Motor Have Shown Interest in Making Evs in India at their existing and new factors.
© Thomson Reuters 2025
(This story has not been edited by ndtv staff and is auto-generated from a syndicated feed.)
(Tagstotranslate) India Cap Investment Ev Charging Tariff Tesla Entry Looms Ev (T) Electric Vehicle (T) India (T) India (T) Tesla
