ACMA welcomes e-vehicle policy, says will foster innovation in auto sector

The electric vehicle policy significantly cuts the import duty on electric cars to 15% from the current 70% for five years.

Autocar Pro News Desk By Autocar Pro News Desk calendar 15 Mar 2024 Views icon1944 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
ACMA welcomes e-vehicle policy, says will foster innovation in auto sector

ACMA, the apex body representing India’s auto component sector, has welcomed the Government's announcement of the e-vehicle policy.

Shradha Suri Marwah, President ACMA & CMD Subros Ltd, said, "The EV Policy marks another significant step towards accelerating the adoption of cutting-edge technology and fostering innovation in India's automotive sector." 

"The policy not only aims to attract global EV majors to invest in India but also emphasises a significant Domestic Value Addition (DVA) criteria, ensuring the creation of a robust supplyside ecosystem." 

Paving the way for the entry of more global automakers in the country, the centre today announced a much-anticipated electric vehicle policy that significantly cuts the import duty on electric cars to 15% from the current 70% for five years. This lower import tax on completely knocked down units is applicable only if companies commit to a minimum investment of Rs 4,150 crore, or US 500 million, for manufacturing in India.

“Under this scheme, EV passenger cars (e-4W) can initially be imported with a minimum CIF value of USD 35,000, at a duty rate of 15% for a period of 5 years from the date of issuance of approval letter by MHI (Ministry of Heavy Industries),” according to a gazette notification issued today.

As per the new policy, companies will have to commit a minimum investment of Rs 4,150 crore for setting up manufacturing facilities within three years and start commercial production. There is also a clause on domestic value addition – the manufacturers will have to achieve a 30% domestic value addition within three years of production and further increase it to 50% by the fifth year.

RELATED ARTICLES
New Aston Martin Vantage priced at Rs 3.99 crore

auther Autocar Pro News Desk calendar23 Apr 2024

New Vantage is powered by a 665hp, 4.0-litre V8.

Stellantis India announces price hike for Citroen and Jeep models

auther Autocar Pro News Desk calendar23 Apr 2024

This adjustment will translate to an incremental rise ranging from Rs 4,000 to Rs 17,000 across the respective models.

Govt receives seven bids for PLI scheme on Advanced Chemistry Cell; Reliance, JSW, Amara Raja amongst bidders

auther Autocar Pro News Desk calendar23 Apr 2024

ACME Cleantech Solutions Private Limited, Amara Raja Advanced Cell Technologies Private Limited, Anvi Power Industries P...