New Delhi (India) July 16 Union Minister of Heavy Industries HD Kumaraswamy has highlighted the transformative potential of the Indian automotive industry and said the country stands to gain significantly from embracing electric mobility.
"The Indian automotive industry is at the cusp of a transformative era," he said, speaking as the chief guest at the Society of Indian Automobile Manufacturers' (SIAM) event "Workshop on Charging Ahead Empowering An EV Ready Workforce in India's Automobile Sector".
Kumaraswamy noted that the global shift towards electric vehicles (EVs) is not merely a passing trend but a significant revolution. "This shift promises to redefine our relationship with a skilled and trained workforce," he added, highlighting India's position as one of the world's largest automotive markets.
"India stands to gain significantly from embracing electric mobility," Kumaraswamy added. "It is a journey that promises economic growth, environmental sustainability, and enhanced energy security," he stated.
Discussing the future of electric mobility in India, Kumaraswamy mentioned that the sector is poised for significant growth in the coming years.
This growth is expected to be driven by advancements and improvements in various EV technologies, increasing consumer awareness, and supportive government policies.
"The government of India has been taking several initiatives to promote the faster adoption of electric vehicles in the country," Kumaraswamy pointed out. These efforts are aimed at ensuring that India not only keeps pace with global trends but also leads in the sustainable transformation of the automotive industry.
India's new EV policy, introduced lately, has provisions for incentives for setting up manufacturing plants in India. Under the government's EV scheme, the government aims to position India as a preferred manufacturing destination for EVs equipped with cutting-edge technology.
The policy has asked for a minimum investment threshold of Rs 4,150 crore (USD 500 million) and encouraging manufacturers to achieve significant levels of domestic value addition (DVA), the government mandates that by the third year of setting up the manufacturing unit, at least 25 per cent of the parts used to make the vehicles should be sourced domestically. This localization level is expected to increase to 50 per cent by the fifth year of operation.
For vehicles valued at USD 35,000 or more, a 15 per cent customs duty will be imposed for five years if the manufacturer builds manufacturing facilities in India within three years.
The total number of EVs allowed for import under the policy will be limited based on the investment made. or of a maximum he value of Rs 6484 crore, whichever is lower. If the investment exceeds USD 800 million, a maximum of 40,000 EVs can be imported, with no more than 8,000 per year, as per the policy. Unused import limits can be carried over.
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