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India may offer on-tap facility for EV manufacturing, letting cos like Tesla test waters first.


Date: 21-02-2025
Subject: India may offer on-tap facility for EV manufacturing, letting cos like Tesla test waters first
New Delhi: India could offer an on-tap facility for manufacturing electric vehicles under the soon-to-be-announced guidelines for the incentive scheme announced last year, officials said. The detailed rules for the scheme are expected next month and the window to avail of the scheme may be open for an extended period, they said


But the company is yet to make any local manufacturing commitments.

This scheme would allow Tesla to assess the demand for its products in India before making manufacturing investments.In another relief to global car makers with an existing manufacturing presence in India, the scheme will consider investments for setting up EV assembly lines within existing factory premises to be eligible for incentives.The Centre expects to receive applications seeking incentives for setting up EV manufa ..

India announced SMEC on March 15, 2024, to encourage investment in local manufacturing of electric cars. The scheme will allow imports of completely built-up electric cars with a minimum cost, insurance and freight value of $35,000 at 15% import duty for a period of five years if a company makes a minimum investment of $500 million to start local manufacturing. Automakers interested in the scheme had previously raised concerns about the quantum of investments specified in EV-only facilities.

 Source Name : Economic Times

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