NEW DELHI: Govt’s
electric vehicle policy
, allowing
duty concessions
for companies that invest in domestic
manufacturing
, has so far seen a muted response, with just one European car maker showing interest, and that too with a rider.
Interestingly, Tesla – which was the key target for creation of the policy – has stayed away, at least for now as it revisits its India plans in view of global challenges.
Vietnamese carmaker Vinfast may be looking at abandoning its
investment
linking it to the new EV policy, while looking at a straight local manufacturing route to launch its cars. The company, which along with Tesla, was seen as the most optimistic on the new EV policy that promises subsidised import duty on cars, now feels that it will be better off by just making them here.
“The company is of the view that it will be better and easier to make cars at its upcoming factory in Tamil Nadu, rather than get into complicated scenario of applying and then qualifying for benefits under EV policy for just a few thousand cars,” a source said.
The ministry of heavy industries (MHI), which deals with the automobile industry on the matter, has held one round of consultations with carmakers, but has so far failed to get many takers.
The ministry is lining up another round of discussions before finalising the norms to open the application window. “In any case, we are also planning to issue detailed guidelines regarding the policy, the investment clause, and other modalities that will clearly define the details of how one becomes eligible for benefits under the scheme,” a source told TOI.
There has been heavy reluctance on the part of the auto industry to commit investments under the new electric vehicles scheme, which was announced in March and seeks investments of at least $500 million from the companies, while promising a highly subsidised import duty of 15% for around 8,000 cars annually.
Some of the German companies have been looking at the policy, and this includes the Volkswagen group that has luxury brands such as Audi, Porsche, and Lamborghini under its fold, apart from flagship Volkswagen.
Tesla, which had been in talks with the ministry of commerce and industry, has so far not indicated any movement, although its representatives have also met with officials. Tesla founder Elon Musk, who was to be in India earlier this year, backed out at the last minute, amid indications that he wants all the issues around his companies to be resolved. At the same time, Tesla itself has been facing challenges related to demand and sales at home and in China.
While officials are still hopeful of achieving “some headway” in talks with the most the high-profile EV maker, the current situation does not suggest that India will be rolling out the proposed lower-cost Tesla car from a plant any time soon, the sources said.
