Amidst anticipation for the forthcoming guidelines of India’s new Electric Vehicle (EV) policy, companies are preparing to leverage the opportunities it presents. The policy, offering incentives such as reduced customs duties on limited car imports, underscores a strategic push towards encouraging domestic production and localization efforts.
As per the policy framework, companies venturing into EV manufacturing must commit to setting up facilities within three years and achieving a localization threshold of 50% within five years. Moreover, a minimum investment of ₹4,150 crore ($500 million) is mandated for initiating commercial production in India. This initiative aligns with the Production Linked Incentive (PLI) Scheme for the Automotive Sector, launched in September 2021, which has garnered significant investor interest, surpassing initial investment estimates. The scheme has attracted a proposed investment of INR 74,850 Cr ($ 9 Bln) against the target estimate of investment of INR 42,500 Cr ($ 5.1 Bln) over a period of five years, according to estimates.
Founders and investors share their perspectives on these developments; as significant steps towards reinforcing India’s stature as a global manufacturing powerhouse –
Revfin Services:
Mr. Sameer Agarwal, CEO & Founder of Revfin, expressed his enthusiasm, “We at Revfin anticipate the upcoming EV policy guidelines with great optimism as it will be an opportunity for the entire EV ecosystem to transition from side-lines to mainstream.”
“The evolving regulatory framework, as we see is expected to expand capacities in brownfield facilities and enhance capabilities, thus pushing the agenda of ‘Make – in – India’ mission. The new policy will not only bring Investments, but also globally proven Technologies to the country in such brownfield projects to future proof manufacturing and product development initiatives. By augmentation of existing infrastructure, the EV industry will gain a competitive edge, making adoption more accessible. The cost advantage will allow easy adoption of electric vehicles, increasing their accessibility for a wider range of consumers. This will not only drive demand but also encourage sustainable mobility solutions, aligning with our collective efforts towards a greener future.” explained Mr. Aggarwal
Revfin is India’s leading digital lending platform focused at sustainable-mobility vertical (EVs) and related ecosystem. “As pioneers in EV financing, we are committed to facilitating seamless access with customised financing & leasing options, thereby empowering individuals and businesses to embrace electric mobility. The upcoming EV policy guidelines will be a catalyst for revolutionizing sustainable mobility, driving the EV industry to innovate and lead the charge towards a greener, more efficient future.” added Mr. Aggarwal