The government is in the process of drafting a policy to incentivise local manufacturing of electric cars. Foreign EV makers like the Elon Musk-led Tesla and Vietnam-based VinFast are also solidifying their India entry strategy. While the policy guidelines are yet to be finalised, local carmakers are concerned about the government’s incentivising strategy. Domestic EV makers have claimed that offering concessional tariffs to Tesla and other foreign manufacturers will adversely impact investments that have already been made or are being made by them to produce electric vehicles.
To address the concerns of the local EV manufacturers, government officials have confirmed that any incentives that is being offered to facilitate local manufacturing of electric vehicles will be equal for foreign as well as domestic investors.
