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In a major boost to India EV ambitions, top global carmakers like Mercedes-Benz, Volkswagen, Skoda, Hyundai, and Kia have formally expressed interest in India new production-linked incentive (PLI) scheme for electric vehicles, said Heavy Industries Minister HD Kumaraswamy. “All these companies have already shown formal interest. Tesla, on the other hand, is only planning to open showrooms and not manufacturing units,” he added.
Announced in 2024, the policy offers a reduced import duty of 15% (down from 70%) on electric vehicles priced at $35,000 or more, applicable for five years. However, this benefit is capped at 8,000 units per year and contingent on a minimum investment of ₹4,150 crore (~$500 million) within three years. The policy mandates value addition of 25% within three years and 50% within five years, with investments directed toward manufacturing, machinery, R&D, and infrastructure—excluding land costs.
The government believes this initiative will position India as a global EV manufacturing hub, boost domestic employment, and support India’s climate goals, including achieving net-zero emissions by 2070. The application window for the scheme will open soon, with companies given 120 days to apply. Only large firms with a minimum of ₹10,000 crore in annual global auto revenue and ₹3,000 crore in global investments are eligible to participate.
