Govt Notifies Rules for 2024 EV Policy: Here Are Perks Global Giants Get

Outlook Planet Desk

India Issues Guidelines on 2024 EV Policy

The government on Monday notified the detailed guidelines for its 2024 policy to promote electric vehicle manufacturing and adoption in India. The scheme aims to attract global carmakers to manufacture EVs in India for the world, offering sharp cuts in import duties in exchange for investment commitments.

Investment in Electric Vehicles

In a statement, Ministry of Heavy Industries said that the Scheme will help to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. "The Scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of “Make in India," they added.

Benefits for EV Manufacturers

Announced on March 15, the ‘Scheme to Promote Manufacturing of Electric Cars in India’ offers a reduced import duty of 15% on electric cars priced at $35,000 or more, provided the manufacturer invests at least $500 million to establish a local plant within three years.

Import Cap

Up to 8,000 EVs can be imported annually under the scheme, with unused quotas carried over. Imported EVs must achieve 25% local content in three years and 50% in five years.

Cap Tied to Investment Limits

The total import duty benefit per applicant will be capped at the lower of Rs 6,484 crore or the actual investment made, with a minimum required investment of Rs 4,150 crore.

Eligibility Criteria, Application Timeline

To be eligible to apply, the applicant must have a global annual revenue of at least Rs 10,000 crore and a capital expenditure (capex) of no less than Rs 3,000 crore. The government will open the application window soon, which will remain open until 15 March 2026.

Bank Guarantee

Applicants must provide a bank guarantee equal to the total customs duty forgone or Rs 4,150 crore (whichever is higher), ensuring commitment to investment, domestic value addition, and scheme conditions.

Application Process

Applications will be accepted online for at least 120 days, with a non-refundable fee of Rs 5 lakh. The Ministry of Heavy Industries will open the window till March 15, 2026.

Global Giants Show Interest, Tesla Stays Away


Heavy Industries Minister HD Kumaraswamy on Monday said that Mercedes-Benz, Volkswagen-Skoda, and Hyundai Motor Co. have already expressed interest in the scheme. However, he noted that Elon Musk's Tesla is unlikely to manufacture electric vehicles in India, with plans limited to opening just two showrooms to sell cars.

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