Overview

• Tesla confirmed it will not build electric vehicles in India and is securing showrooms in Mumbai’s Bandra-Kurla Complex and Delhi’s Aerocity to sell imported models.
• The finalized Scheme to Promote Manufacturing of Electric Passenger Cars in India allows fully built EVs priced above $35,000 to enter at a 15% duty if companies invest $500 million and begin local assembly within three years.
• Manufacturers must achieve 25% domestic value addition in three years and 50% by year five to retain reduced-tariff status and bolster local component sourcing.
• Mercedes-Benz, Volkswagen, Hyundai and Kia have expressed interest in leveraging the incentives to establish EV production lines under the new framework.
• Domestic players Tata Motors and Mahindra & Mahindra have lobbied against the duty cuts, warning the concessions could undercut their substantial investments in India’s nascent EV sector.