Union Minister HD Kumaraswamy Talks About India’s Electric Vehicle Future
Union Minister of Heavy Industries HD Kumaraswamy has highlighted the transformative potential of the Indian automotive industry and the significant benefits of embracing electric mobility. Speaking at the Society of Indian Automobile Manufacturers’ (SIAM) event, Kumaraswamy noted that the global shift towards electric vehicles (EVs) is a significant revolution.
He emphasized that this shift promises economic growth, environmental sustainability, and enhanced energy security. Kumaraswamy discussed the future of electric mobility in India, mentioning that the sector is poised for significant growth driven by advancements in EV technologies, increasing consumer awareness, and supportive government policies.
The government of India has introduced a new EV policy with provisions for incentives to set up manufacturing plants. The policy requires a minimum investment of Rs 4,150 crore (USD 500 million) and mandates that by the third year, at least 25% of the parts used in manufacturing should be sourced domestically, increasing to 50% by the fifth year. For vehicles valued at USD 35,000 or more, a 15% customs duty will be imposed for five years if manufacturing facilities are built in India within three years.
The policy also limits the number of EVs allowed for import based on investment, with a maximum of 40,000 EVs if the investment exceeds USD 800 million. Unused import limits can be carried over.
