April 13, 2024

Unrestricted Import of Electric Vehicles from All Countries, Including China: DPIIT Secretary

India has no restrictions on the import of electric vehicles from any country, including China, under the new EV policy, said a senior government official.

Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh K Singh, in an interview to CNBC-TV18, said that the EV policy has received strong response from global EV makers. Singh also said that he advised all government departments to disburse production-linked incentives (PLI) on a quarterly basis.

“As of now there is no restriction on imports from China. You would have seen BYD vehicles are already on the road after paying the relevant import duties,” he said, adding that the only restriction is on the investment side. He acknowledged that FDI from land border countries are difficult, and restrictions are in place for the same.

The government last month announced a new policy to incentivise domestic manufacturing of electric vehicles (EVs). Under this policy, manufacturers who commit to an investment of at least Rs 4,150 crore and start production within three years will see a reduction in import taxes on certain EVs. These manufacturers will have to ensure that at least 25 per cent of the components used are sourced locally.

On meeting these conditions, companies will be permitted to import up to 8,000 EVs annually. These imported EVs, if priced at $35,000 (Rs 29 lakh approx) or above, will attract a reduced import duty of 15 per cent. Currently, import tariffs on cars range from 70 per cent to 100 per cent, depending on their value.

Source: https://www.businesstoday.in/