The DPIIT discusses a scheme to subsidize electric car manufacturers based on their in-country investments.
Under the Ministry of Commerce & industry guidance, the Department for Promotion of Industry and Internal Trade (DPIIT) has started talks to establish a program that offers subsidies to electric four-wheeler manufacturers. These subsidies are connected to the companies’ investments in vehicle production within the nation.
Foreign carmakers like Tesla, VinFast, Maruti Suzuki, Hyundai Motor India, Kia, Tata Motors, and Mahindra & Mahindra (M&M) are keen on introducing a range of electric vehicles in the Indian market.
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In recent conversations, industry participants expressed interest in coming to India. Piyush Goyal emphasized a commitment to a level playing field, suggesting that the electric vehicle future is enticing and integral.
There are ongoing consultations to define the investment threshold for carmakers to avail of benefits under the new scheme as the Centre evaluates its outlay. The government aims to extend incentives to manufacturers based on their investments in local electric car production. The approach contrasts FAME II, which was a consumer subsidy. A senior government official feels that this will be a manufacturing incentive. Lower car prices and enhanced employment opportunities are expected benefits of local manufacturing.
The core aim of the policy is to create an equitable landscape for the electric car industry by promoting local manufacturing.