The government is probably seeking to change the parameters of a new regulation that encourages the production of electric vehicles (EVs) in India as Tesla gets ready to enter the nation this year.
According to reports, the revised EV legislation may require automakers to demonstrate a turnover of Rs 2,500 crore in the second year alone in an effort to draw in companies like Tesla. Additionally, the center might provide additional import duty assistance.
After the revised EV policy is announced in mid-March, the government is probably going to begin taking applications. According to trustworthy sources, imports are anticipated to begin shortly following the approvals, which are anticipated to be granted by August.
Elon Musk-led Tesla will rely on imports from its Berlin Gigafactory in Europe and progressively expand local procurement instead of starting production in the nation right away.
While everyone is waiting for Elon Musk’s Tesla to enter India, the government is anticipating positive feedback on the EV policy from a number of major automakers.
The government lowered the customs charge to 15% under specific conditions when it introduced the new EV policy in March of last year.
Establishing EV manufacturing facilities required a minimum investment of Rs 4,150 crore. Production was to begin within three years, reach 25% DVA (domestic value addition) within three years, and reach 50% DVA at most within five years.
Musk and other automakers were able to enter the Indian EV market because to the new EV policy.
Experts estimate that by 2030, the nation’s EV market might reach over 40% penetration and generate $100 billion in revenue.
The Musk-led EV giant, however, plans to adopt a “top-down approach” by first introducing pricey models in India before introducing more affordable ones.
Since the electric SUV is produced in the European facility with right-hand drive, the electric car manufacturer is apparently planning to import its fully-built Model Y from its Berlin Gigafactory.
According to reports, Tesla, which has an office in Pune, is looking for sites to open its first showrooms in the nation in Delhi’s Aerocity and Mumbai’s Bandra-Kurla Complex (BKC).
At least 13 new positions have been posted by the company, mostly for the Delhi and Mumbai regions. According to its LinkedIn ads, the positions include customer engagement manager, order operations specialist, business operation analyst, service technician, and other advisory roles.
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