India EV policy may exclude Chinese cos

India EV policy may exclude Chinese cos

India may not extend electric vehicle concessions to Chinese EV companies like BYD owing to national security concerns, according to a report of Moneycontrol.

“The concessional import duty policy is linked to actual investments in that sense. BYD does not come into the picture because it will not be able to provide FDI commitment that this EV policy needs. Because FDI will require clearances, BYD is, in the sense, out. Meaning, if it has to come, it will have to pay the existing duty of 70 and 100 percent,” an official told the website.

Indian government approved the new EV policy in March this year, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million.

The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government.

At present, cars imported as completely built units attract customs duty ranging from 70-100 per cent, depending on the engine size and cost, insurance and freight value less or above USD 40,000. ..

Earlier, a report of think tank Global Trade Research Initiative (GTRI) warned that the new EV policy may lead to large-scale entry of Chinese auto firms in the local market.

The GTRI report said that in the “next few years, every third electric vehicle and many passenger and commercial vehicles on India roads could be those made by Chinese firms in India alone or through Joint Venture with Indian firms”.

Last month, a senior govt official told a TV channel that under the new EV policy, there are no restrictions on the import of electric vehicles from any country, including China.

For more news like this visit The Economic Times.