India's high-end EV plan gains momentum

author: FutureCar Staff    

The government is considering a new electric vehicle (EV) strategy similar to a phased manufacturing plan (PMP), according to a report by ToI on August 14. The plan aims to attract global auto giants like Tesla to the high-end EV market in India. The proposed strategy will be inclusive of all companies in the industry and contribute to the growth of the EV ecosystem in the country. The government believes that a phased manufacturing program will gradually increase the localization of EV components, meeting domestic demand and creating opportunities for exports. It is important to note that domestic companies like Tata Motors and Mahindra will not be negatively affected, as they are already investing heavily in the EV sector.

The new plan will introduce a graded duty structure to encourage local manufacturing, which has the potential to accelerate India's transition to EVs and support the growth of this emerging sector, according to sources cited by ToI. Tesla, one of the major players in the EV market, is currently exploring opportunities beyond China. Officials have indicated that Tesla is interested in bringing its entire ecosystem, including vendors, to India. The company has already sourced goods worth approximately Rs 12,000 crore from India. Discussions have suggested that Tesla could enter the Indian market through the PMP or FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) route.

In July, reports emerged that Tesla is considering establishing a factory in India to produce vehicles priced around Rs 20 lakh, with a capacity of approximately 500,000 units. Apart from Tesla, other global giants such as BMW and Foxconn have also shown interest in the Indian EV space. BMW executives recently met officials from the heavy industries ministry to propose a duty-free import of EVs for three years, with the intention of investing in a manufacturing facility in India afterwards. If the company fails to invest, it has committed to refund the duty benefits. Foxconn's EV platform, Mobility in Harmony, is also planning to invest more in India and is considering establishing a base in either India or Thailand for a three-seat vehicle priced between Rs 8.5 lakh to Rs 17 lakh.

FutureCar Staff