Revolutionising Indian Automotive Market: New Electric Vehicle Policy 2024

1: Introduction and Overview of the Policy

  1. The Government of India has introduced the New Electric Vehicle Policy 2024, targeted at transforming India into an EV manufacturing powerhouse.
  1. The policy strategically aligns with the 'Make in India' campaign to promote local manufacturing and technological advancement in the EV sector.

2: Key Highlights of the Policy

  1. Allows duty reductions on EV imports. The custom duty slashes to 15% is applicable on EVs with a minimum CIF value of USD 35,000.
  2. The policy's Import Cap and Investment Prerequisites stipulate a cap on the number of imported EVs at 8000 per year.
  3. Manufacturers must make a minimum investment of Rs 4,150 crore to benefit from duty concessions.
  4. The measure encourages the establishment of operational facilities within a 3-year timeline and the achievement of 25% minimum domestic value addition within the period.
  5. The duty waived on imported EVs is capped at the investment made or Rs 6484 Cr.

3: Evolving EV Market in India

  1. With India being the world’s third-largest automobile market and one of the fastest-growing, the EV sector is poised to emerge as a significant category within the automotive industry.
  2. Total EV registrations surpassed 1.5 million units by the end of 2023, showing robust growth in the EV market.

4: Other Electric Vehicle Initiatives in India

  1. Electric Mobility Promotion Scheme (EMPS) 2024, Phased Manufacturing Programme (PMP), National Mission on Transformative Mobility and Storage, EV30@30 campaign, Production Linked Incentive (PLI) scheme for Automobile and Auto Components, and National Electric Mobility Mission Plan (NEMMP) are other key initiatives aimed at encouraging EV adoption.

5: Challenges Encountered by Indian EV Market

  1. The dearth of charging infrastructure, high upfront cost of EVs, limited consumer awareness and lack of service centres present significant challenges in the EV market.
  2. The market's dependence on subsidies and policy uncertainty further complicates long-term planning for automakers and consumers.

6: Future Course of Action

  1. Expanding the charging infrastructure network, implementing battery swapping policy, and promoting innovation in battery technology are critical steps forward.
  2. Besides, educational campaigns are necessary to increase consumer awareness about EV benefits.

In conclusion, the New Electric Vehicle Policy 2024 aims at revolutionising the Indian automobile market by promoting EV manufacturing, reducing dependency on oil imports, and fulfilling India's climate goals. While challenges persist, strategic planning and action can largely mitigate them, paving the way for a sustainable and environmentally friendly transportation system in India.