India begins to implement a unique scheme for high-end electric vehicles

The govt is looking at a new EV strategy along the lines of a phased manufacturing plan (PMP). This is part of a plan to woo global auto biggies such as Tesla in the high-end electric vehicles market. The new plan is expected to be company-agnostic and respond to the needs of the entire industry, besides playing a role in boosting the EV ecosystem in India, the stated. The plan is based on the basic premise that a phased manufacturing program will help companies gradually raise the level of indigenization.

The govt expects its incentives to meet domestic demand besides creating a base for exports. These incentives are also expected to help develop capacity in a new segment without negatively impacting domestic companies like Tata Motors and Mahindra. It may be noted here that these two companies are putting big money into the electric vehicle space. According to the, the new plan will bring a graded duty structure to boost local manufacturing.

This plan has the potential to help fast-track India's transition towards EV, at the same time boosting an emerging segment, sources cited by. Tesla is currently making plans to diversify beyond China, which is one of its major production bases. There have of late been enough indications that the Elon Musk-led EV giant has been seeking to "bring its entire ecosystem, including vendors, to India," officials told TOI. As per the, Tesla is already sourcing goods worth around Rs 12,000 crore from the country. During discussions held so far, officials told Tesla that the company could come through the PMP or FAME route, it said.

There were in that Tesla is looking to set up a factory in India to make vehicles priced around Rs 20 lakh, with a capacity of around five lakh units. Other than Tesla, some other global biggies such as BMW and Foxconn have also evinced interest in the Indian EV space. BMW executives recently met officials from the heavy industries ministry, pitching for allowing duty-free import of EVs for three years. After this period, they intend to invest in a manufacturing facility in India, they said. If the company fails to invest, it would refund the duty benefits. 

The executives told the ministry. In early, the CEO of Mobility in Harmony, the EV platform of Foxconn, said that the company, which is in the process of deploying more money in India, is looking to set up a base either in India or Thailand for a three-seat vehicle to be priced between Rs 8.5 lakh to Rs 17 lakh.