New Delhi Begins Consultations On New EV Policy With Global Auto Giants As Elon Musk's Visit Looms

Just ahead of Tesla CEO Elon Musk’s upcoming visit to India, the centre convened its first consultation session on Thursday (18 April) with global automotive manufacturers, including Tesla representatives, to prepare guidelines for the recently unveiled electric vehicles (EV) policy.

This initial meeting, expected to be followed by more such discussions, saw the participation of the Ministry of Heavy Industries (MHI) and the Finance Ministry, alongside global giants like VinFast, Mercedes-Benz, BMW, Kia, Volkswagen, Toyota, Hyundai, and Renault-Nissan, as reported by Business Standard.

Indian automakers Tata Motors, Maruti Suzuki, and Mahindra & Mahindra were also in attendance.

Tesla's interests were represented by The Asia Group (TAG) India, serving as its advisor, in the stakeholder consultation session with the Ministry of Heavy Industries. TAG, headquartered in Washington specialises in strategy and business advisory services.

In March 2024, New Delhi introduced a new EV policy, offering reduced duties on a select number of EV imports for companies pledging to commence domestic production within three years.

Under the policy, original equipment manufacturers (OEMs) committing to invest a minimum of $500 million (Rs 4,150 crore) and establishing manufacturing facilities within three years are eligible for lowered import taxes.

Furthermore, these companies must achieve a 25 per cent Domestic Value Addition (DVA) within the initial three years and increase it to 50 per cent by their fifth year of operation in the country.

“The consultation meeting was convened to address queries from auto OEMs. We answered the queries regarding the timeline for investment and DVA,” Hanif Qureshi, additional secretary, Ministry of Heavy Industries (MHI), told Business Standard.

The forthcoming guidelines aim to offer clearer insights into investments in EV manufacturing within the country. This sector, still in its infancy, is poised to evolve into a significant category within the automotive industry in the years ahead.

“This was the first consultation after the announcement of the policy. We plan to commence the application process within two months,” an official working on the scheme said.