India Accelerates EV Ambitions with New Foreign Investment Scheme

In a recent statement, Union Minister for Heavy Industries and Steel H D Kumaraswamy clarified that Tesla's interests in India currently extend only to setting up a showroom, quelling rumors of a manufacturing unit. The comment came during the unveiling of a portal designed to welcome international electric vehicle (EV) manufacturers eager to enter the Indian market.

The initiative, launched by the Ministry of Heavy Industries, is part of a strategic move to attract global investments, boosting India's image as a leading destination for EV manufacturing. This scheme underpins the nation's 'Make in India' initiative by providing opportunities not only for economic growth but also for job creation within the burgeoning EV sector.

Under the scheme, applicants are permitted to import Completely Built-in Units (CBUs) of electric vehicles valued at a minimum of USD 35,000 with a reduced customs duty rate of 15 percent for five years. This incentive structure is designed to motivate international manufacturers to heavily invest, with a baseline investment requirement set at Rs 4,150 crore, further cementing India's ambitions to become an electric vehicle manufacturing powerhouse.

The ministry is poised to open the application process from June 24, 2025, continuing until October 21, 2025. This forward-thinking policy framework aims to advance domestic car manufacturing, particularly focusing on the EV segment, thereby reinforcing India's infrastructure for electric mobility.

(With inputs from agencies.)