According to Reuters, sources said that India plans to relax the range of electric vehicle subsidies and no longer limited to car manufacturers in new factories in India, and car manufacturers who produce electric vehicles in India’s existing factories can also enjoy the subsidy.
The Indian electric vehicle policy was originally aimed at encouraging American car manufacturers Tesla to enter the Indian market and produced electric vehicles in the local area, but Tesla canceled these plans earlier this year. India is still finalizing its electric vehicle policy.
According to the meeting of the Indian Ministry of Industry, other foreign car manufacturers also interested in the production of electric vehicles in the existing or new factories in India. According to sources, India hopes that the changes in its electric vehicle policy will inspire Toyota Motor and Hyundai vehicle companies to invest in electric vehicles in India.
According to the electric vehicle policy announced in March this year, if the car company invested at least 500 million US dollars in India to produce electric vehicles, and to ensure that 50%of them are from India, and the car company has the right to enjoy the significant import tax of import taxes. Dissetting discounts, the import tax of up to 8,000 electric vehicles per year can be reduced from 100%to 15%.
Sources said that if the car company invests in existing factories that produce gasoline cars and hybrid vehicles to produce electric vehicles, the Indian government will also consider providing subsidies. However, electric models must be produced on a separate production line and meet the local procurement standards of India.
Sources said that if it is a new factory, the investment of the machinery and tools for production of electric vehicles will also be included in the threshold of 500 million US dollars, even if these equipment is used to produce other types of cars.
Sources also revealed that in order to ensure that automakers are treated fairly, the Indian government will set the minimum electric vehicle revenue target for factories or production lines, and car companies must meet this goal to meet the subsidy requirements of Indian electric vehicle policy. Sources added that India will finalize its electric vehicle policy in March next year.
The minutes of the meeting showed that Toyota Motor executives asked whether the Indian electric vehicle subsidy policy allowed to invest in a separate electric vehicle installation line in a factory that produces a variety of power system cars, and tried to understand whether the manufacturing and installation of the charging station would be included in it. 500 million US dollars investment threshold.
At the same time, the meeting of the meeting shows whether modern automobiles ask whether the funds used for research and development can be counted as part of the investment threshold of 500 million US dollars. However, sources said that this would not be counted. A spokesman for Hyundai Automobile India subsidiaries said the company is waiting for the Indian government to introduce the final policy and guidance policy.
The minutes of the meeting also showed that the Indian subsidiary of Volkswagen Group hopes to have more flexibility in the investment timetable. The company asked if it could invest 75%of the 500 million US dollars (currently requires 100%) to invest in the first three years of the five -year plan, and tried to understand whether the investment of automotive parts suppliers meets the requirements. Volkswagen Group stated that it is studying the latest electric vehicle policy in India in detail and will evaluate the company’s future path according to this.
In response to the above reports, Toyota Motor and India ‘s Ministry of Industry have not responded to Reuters’ comment requests.