India to develop new policy to promote EV investment: Commerce minister  

The commerce minister on Wednesday said that India will develop new policies to attract electric vehicle (EV) producers and promote more investment in the industry.

The remarks from Piyush Goyal come as American electric vehicle manufacturer Tesla and the Narendra Modi administration continue to discuss the idea of establishing a facility in India.

Sources with exclusive knowledge of the situation told Reuters that India was developing an EV strategy that would lower import levies for automakers that committed to some local manufacture.

Add WION as a Preferred Source

Goyal told Reuters that there will be industry consultation on the new regulation when asked about the government’s plans.

The administration wants to enhance domestic EV manufacturing as and when feasible and attract more investment, to that he remarked, “We will come out with a policy.”

Reuters further quoted Goyal as saying, “As we get large-scale production, we will start enjoying the fruits of economies of scale of new technologies.” However, he did not elaborate on any potential incentives.

Senior executives from Tesla who were interested in constructing a factory in India met with Goyal in August.

For both the Indian market and for exports, Tesla intends to build a low-cost EV priced at $24,000, which is about 25 per cent less expensive than its current entry-level model.

Tesla, which spent $1 billion on parts last year, plans to purchase components from India this year in the range of $1.7 billion and $1.9 billion, according to Goyal, who made the announcement on Tuesday.

(With inputs from Reuters)

WATCH WION LIVE HERE