India's Breakthrough EV Manufacturing Scheme Unveiled

India has rolled out a groundbreaking scheme to promote the manufacturing of electric vehicles (EVs) within its borders. Automakers committing to substantial local investments can benefit from significantly reduced import duties for electric passenger cars, making the nation a hub for EV production.

Union Heavy Industries Minister H D Kumaraswamy inaugurated the application portal, emphasizing Tesla's current showroom-focused strategy in India over domestic production. Despite Tesla's stance, other companies like Mercedes-Benz have already invested significantly before the scheme's official launch.

The scheme mandates a progressive scale of domestic value addition and allows for preferential import duty rates, provided firms meet strict investment targets and operational deadlines, aiming to situate India as a key player in the global EV market by 2026.

(With inputs from agencies.)