| Syllabus: GS-III; Subject: Environment, Ecology and Disaster Management; Topic: Indian Initiatives, efforts and Commitments, Issue: EV Policy. |
Context: India’s new EV policy allows imports of electric vehicles from any country, including China.
Policy Includes:
- Lowering import taxes on certain electric vehicles.
- Car manufacturers must commit to investing at least $500 million and commence domestic manufacturing within three years to benefit from the tax reduction.
- Aim: To encourage investment and production of electric vehicles within India.
- Impact: It could potentially increase the availability of electric vehicles in the Indian market, including those from Chinese manufacturers.
Prelims Connect (Policies/Schemes/Programs)
| Â New Electric Vehicle Policy 2024:
✔      Customs duty cut to 15%. ✔      Minimum Investment required: Rs 4150 Cr ✔      No limit on maximum Investment ✔      Timeline for manufacturing: 3 years for setting up manufacturing facilities in India, and to start commercial production of e- vehicles, and reach 50% domestic value addition (DVA) within 5 years at the maximum. ✔      Domestic value addition (DVA) during manufacturing: A localization level of 25% by the 3rd year and 50% by the 5th year will have to be achieved Key Benefits: ✔      Drives innovation and local manufacturing. ✔      Reduces oil imports, pollution. ✔      Aligns with emission reduction goals. |
