Legendary car manufacturing companies like Skoda-Foxwagen and Mercedes have planned to start manufacturing electric cars in India. Under their make-in-India plan, these three companies are preparing to make a big investment. The Ministry of Heavy Industries will give exemption to these companies as part of a plan to promote manufacturing of electric passenger cars in India.
This news has come up at a time when the government is emphasizing on promoting domestic manufacturing of passenger cars, paying special attention to electric vehicles (EV). For this, the government has issued new guidelines on Monday.
What is the new rule:
The Ministry of Heavy Industries (MHI) will make concessions under a plan to promote manufacturing of electric passenger cars in India (SPMEPCI). Quoting sources, the report of our colleague Business Today states that the formal announcement is expected soon. The scheme was notified on 15 March, but guidelines were issued on Monday.
Related news
Officials said that the window to apply under this scheme will open in a few weeks. To encourage global car manufacturers to invest, approved applicants will be allowed to import electric vehicles with a minimum of $ 35,000 CIF at a lower customs duty of 5 years from the date of application from the Complete Unit (CBU) route. According to the rule of this scheme, applicants will have to invest a minimum of Rs 4,150 crore.
The application window for vehicle manufacturers will be open for 120 days or more. The Ministry of Heavy Industries has the right to open the application window as required by the next 15 March 2026. Domestic companies like Tata Motors and Mahindra & Mahindra have invested millions of dollars in local electric vehicle manufacturing, and investment will continue further. However, he has advocated against duty cuts.
Tesla will not plant plant in India:
Where players such as Skoda-Foxwagen and Mercedes are planning to manufacture electric cars in India. At the same time, there has been a big news about the manufacturing plant of Allen Musk’s American electric car company Tesla. Last yesterday, Union Heavy Industries Minister HD Kumaraswamy said in response to a question of Tesla’s India entry, “Tesla … They are only going to start the showroom. They are not interested in manufacturing cars in India.” However, heavy industry secretary Kamran Rizvi said, “We will know the real intention when we open the application.”
Input: Chetan Bhutani
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