Global Auto Giants Eye India for Electric Car Manufacturing

In a significant move towards bolstering electric vehicle production, global giants Mercedes Benz, Skoda-Volkswagen, Hyundai, and Kia have demonstrated interest in India's electric car manufacturing scheme, according to a recent announcement by Union Heavy Industries Minister H D Kumaraswamy.

This interest was conveyed during stakeholder discussions between the governmental bodies and industry leaders surrounding the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India'. Unveiled by the minister, the scheme was initially notified on March 15 last year, providing a timely incentive framework.

To attract major international players under this initiative, approved companies will benefit from the importation of Completely Built-in Units (CBUs) at a reduced customs duty rate of 15 percent. However, these opportunities come with conditions, including a minimum Rs 4,150 crore investment aligned with scheme provisions. The application process remains open until March 15, 2026, encouraging significant foreign investment.

(With inputs from agencies.)