The Indian government’s new Electric Vehicle (EV) policy aims to bolster the ‘Make in India’ initiative and attract global investors by fostering domestic production of cutting-edge EV technologies. With a minimum investment requirement of 4,150 crore, the policy encourages unlimited investment and mandates a three-year timeline for setting up manufacturing facilities.
Emphasizing domestic value addition, the policy stipulates a 50 per cent target within five years. It offers incentives for investments exceeding USD 800 million and allows limited EV imports under certain conditions. Additionally, companies must provide a bank guarantee to ensure adherence to investment and value-addition commitments. By promoting local manufacturing, the policy aims to reduce reliance on crude oil imports, decrease the trade deficit, and mitigate urban air pollution, aligning with broader environmental and economic goals.
According to Rohan Shravan, Founder and CEO of Tresa Motors, the new EV policy encourages global manufacturers to establish manufacturing facilities in India, fostering technology transfer and creating employment opportunities.
“This policy will not only boost domestic EV production but also promote the development of a robust ecosystem for electric vehicles in the country. Local EV players can leverage this opportunity to collaborate with global giants, acquire technical know-how, and enhance their capabilities in areas such as battery manufacturing, charging infrastructure, and component localization. At Tresa Motors, our unwavering commitment to indigenous design, spanning from motors to batteries, aligns seamlessly with both global standards and India’s push for renewable energy. We are committed to supporting the government’s initiatives and contributing to the growth of the Indian EV market. Setting up a manufacturing facility in India with a significant investment will help create a localized supply chain, generate skilled jobs, and promote the adoption of sustainable transportation solutions. This will not only benefit the environment but also position India as a global hub for EV manufacturing and innovation,” Shravan added.
Ashok Vashist, Founder & CEO at Wise Travel India Private Limited, feels that the new EV policy is a strategic move towards environmental stewardship and sustainable development.
“Investing in the long term, as demonstrated by nations like Sweden, is pivotal for sectoral growth. India’s policy echoes this by encouraging local EV players to innovate and contribute significantly to the industry. Moreover, the policy’s alignment with educational practices ensures that the next generation is primed for a greener future, fostering habits of sustainable transportation from a young age. This policy is a clarion call for collaborative efforts across academia, industry, and government to drive R&D, bolster public awareness, and develop a robust charging infrastructure. It is a commitment to reducing import dependency by nurturing domestic production capabilities, thereby enhancing economic resilience. It is a testament to India’s dedication to shaping a self-reliant, environmentally conscious, and technologically advanced nation,” Vashist said.
Echoing the same sentiment, Akash Gupta, Co-Founder & CEO, Zypp Electric, said that the recent EV policy places a strong emphasis on integrating domestic resources into manufacturing processes.
“This strategic shift not only expedites the uptake of electric vehicles but also strengthens the Make in India initiative. By leveraging local expertise and resources, we empower indigenous EV manufacturers to flourish, making significant contributions to the ecosystem. The adoption of domestic electric vehicle (EV) manufacturing presents last-mile delivery companies with a transformative advantage, offering reduced operational and EV acquisition costs. This policy cultivates an environment conducive to innovation and expansion, positioning India as a global epicentre for electric vehicle production. Prioritizing local involvement not only ensures self-sufficiency but also generates employment opportunities and stimulates economic development. As we tap into our domestic potential, we forge a path towards a greener, more resilient future, solidifying India’s leadership in the electric mobility revolution,” he summed up.
