Highlighting the transformational potential of the Indian automobile industry, Minister of Heavy Industries HD Coomaraswamy said the country can benefit immensely from the adoption of electric mobility. “The Indian automobile industry is standing on the threshold of a transformational era,” he said while speaking as the chief guest at the Society of Indian Automobile Manufacturers (SIAM) event “Workshop on Charging – Strengthening Electric Vehicle Ready Workforce in the Indian Automotive Sector”.
Coomaraswamy noted that the global shift towards electric vehicles (EVs) is not just a passing trend but a significant revolution. He further added that “this transition promises to redefine our relationship with a skilled and trained workforce,” highlighting India’s status as one of the largest automobile markets in the world.
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“India can benefit immensely from the adoption of electric mobility,” Coomaraswamy added.
“This path promises to deliver economic growth, environmental sustainability and improved energy security,” he said. On the future of electric mobility in India, Coomaraswamy said the sector will witness significant growth in the coming years.
This growth is expected to be driven by advancements and improvements in various electric vehicle technologies, growing consumer awareness and supportive government policies. “The Indian government has undertaken several initiatives to facilitate faster adoption of electric vehicles in the country,” Coomaraswamy noted.
These initiatives are aimed at ensuring India not only keeps pace with global trends but also plays a leading role in the sustainable transformation of the automotive industry. The new electric vehicle policy recently introduced in India provides incentives for setting up manufacturing facilities in India.
As part of the National Electric Vehicle Program, the government aims to position India as a preferred production location for advanced technology electric vehicles. The policy sets a minimum investment threshold of US$ 4.15 billion (US$ 500 million) and encourages manufacturers to achieve significant domestic value addition (DVA).
To this end, the government stipulates that at least 25% of the components used in the manufacture of vehicles must be sourced locally by the third year of establishment of the production unit. This level of localization is expected to increase to 50% by the fifth year of operation.
Vehicles priced above US$ 35,000 will be subject to a 15% customs duty for five years if the manufacturer sets up a production facility in India within three years. The total number of electric vehicles allowed to be imported under this policy will be limited based on the investment made; or a maximum of Rs 6,484 crore, whichever is lower.
According to the policy, if the investment exceeds $800 million, then a maximum of 40,000 electric vehicles can be imported, up to a maximum of 8,000 units per year. Any unused import limit can be transferred.
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