Govt mulls subsidising carmakers investing in local EV production

The government is working on a policy to support local manufacturing of electric cars, a decision likely to provide a level playing field for the industry, The Economic Times (ET) has reported. The push for local manufacturing is likely to help generate more jobs and bring down the car’s overall prices.

To this end, the Department for Promotion of Industry and Internal Trade (DPIIT) has started discussions to introduce a scheme for subsidising electric four-wheeler makers. The subsidy will be based on the investments made by these companies for producing vehicles in the country, senior officials familiar with the development were cited as saying in the ET report.