Amid Tesla Buzz, Govt Mulls sops for Charging Infra to Lure Global EV Players

The Indian government has long been trying to attract global electric vehicle (EV) players to manufacture in India. Over the years, a number of schemes have been launched to facilitate global EV giants' setting up manufacturing units in India and selling their vehicles at better margins.

The government is now considering expanding the scheme to include investments in charging infrastructure, making the policy more attractive to global EV manufacturers, Mint reported. This comes just days after Elon Musk's Tesla Inc. posted several job openings in India, signaling the EV maker’s potential entry into the Indian market.

Also Read: As Tesla Enters, Indian Auto Giants Bet on EV Discounts and Deals: Will it Cheer Investors?

The Schemes

One of the most recent is the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI), introduced in March 2024. It offers reduced customs duties for companies investing at least Rs 4,150 crore ($500mn) in local EV production. Investors have three years to set up operations and must achieve 50% domestic value addition within five years. They can also import up to 40,000 EVs at a concessional 15% customs duty if the vehicles meet a minimum CIF value of USD 35,000.

The Production Linked Incentive (PLI) Scheme for the Automotive Sector, launched in September 2021, provides financial incentives of up to 18% for eligible EV manufacturers. With a budget of Rs 25,938 crore, this scheme encourages global automakers to set up production facilities in India, promoting local manufacturing and technological development.

The PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage, approved in May 2021, focuses on boosting domestic battery production. It provides Rs 18,100 crore in incentives to support the manufacture of 50 GWh of ACC batteries, reducing dependency on imports and strengthening the local supply chain.

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India Scheme – Phase II, in effect since April 2019, aims to accelerate EV adoption. With a Rs 11,500 crore budget, it offers subsidies for electric two-wheelers, three-wheelers, four-wheelers, and buses while also funding charging infrastructure development.

Also Read: Number of Operational EVs in India Likely to Cross 28 Million-Mark in 2030: IESA

Tesla’s India Entry

Days after Prime Minister Narendra Modi met Tesla head Elon Musk in the US, the EV manufacturer has started hiring for its India operations. The EV giant is seeking candidates for at least 13 job roles in Delhi and Mumbai. The job roles range from Service Advisor and Parts Advisor to Tesla Advisor, Customer Support Supervisor and Delivery Operations Specialist.

As all the job roles are based out of Mumbai and Delhi, it may be expected that the company may open its first India stores starting from the two metros.