India is gearing up to launch a groundbreaking policy designed to lure electric vehicle (EV) manufacturers and stimulate increased investment in this burgeoning industry. Commerce Minister Piyush Goyal made this momentous announcement on Wednesday, marking a pivotal shift towards EV development in the country.
This development coincides with ongoing discussions between U.S. EV giant Tesla and the administration of Prime Minister Narendra Modi regarding the potential establishment of a Tesla factory in India.
EV Policy to Attract Investment and Foster Electric Vehicle Production
Just last month, Shree Metal Prices disclosed that India was diligently crafting an EV policy aimed at reducing import taxes for automobile companies willing to commit to domestic vehicle manufacturing. Reliable sources with direct insights into the matter provided this information.
In response to inquiries about the government’s intentions, Minister Goyal underscored the importance of industry consultations in shaping the upcoming policy.
He emphasized the government’s overarching objective of attracting substantial investments and rapidly scaling up EV production within India.
Additionally, Goyal noted that as India achieves economies of scale in production. It will harness the cost efficiencies inherent in cutting-edge technologies. However, he refrained from divulging specific details about potential incentives.
In August, senior Tesla executives, exploring the prospect of establishing a manufacturing facility in India, held discussions with Minister Goyal.
Tesla’s strategic vision encompasses the production of an affordable EV priced at $24,000, representing a remarkable 25% reduction in cost compared to their current entry-level model. This cost-effective EV is intended to cater to both the Indian market and overseas demand.
Furthermore, Goyal disclosed that Tesla aims to procure components valued between $1.7 billion and $1.9 billion from India this year. Following their acquisition of components worth $1 billion in the previous year.