| Syllabus: GS-III, Subject: Economy, Topic: Industry and Industrial policies, Issue: Various Industrial sectors and policies and initiatives |
Context: In response to union government’s new e-vehicle policy Tesla Motors is considering setting up a $2-3 billion electric car plant in India,
Key points of the new e-vehicle policy:
- EV policy lowers import duty for companies investing a minimum of Rs 4,150 crore in manufacturing plants.
- Policy sets localization targets: 25% by third year and 50% by fifth to enhance domestic value addition.
Key factors making India a attractive E-vehicle manufacturing destination:
- India ranks as the world’s third-largest auto market.
- Electric vehicle sales in India exceeded 1.5 million in 2023, led by two-wheelers and three-wheelers.
- Government targets to raise EV share to 30% by 2030, unlocking substantial growth.
Significance of global player entering in EV manufacturing:
- Enhances consumer choice and promotes competition in the EV sector.
- It facilitates the introduction of latest technology and helps reduce carbon emissions.
- Decreases dependence on oil imports, contributing to energy security.
The way ahead:
- Crucial to monitor investment and localization criteria to prevent target relaxation.
Rapid ramp-up of charging infrastructure is vital for enhancing EV attractiveness.
