'India won't change EV policy to suit a specific company': Amitabh Kant says no special treatment for Elon Musk's Tesla

Former NITI Aayog CEO Amitabh Kant has clarified India's stance on its electric vehicle (EV) policy, underlining that the country will not tailor its regulations to accommodate specific companies, even Tesla.

This statement comes amidst speculation surrounding Tesla's potential entry into the Indian market, which was further fueled by CEO Elon Musk's planned visit to India in April, a visit that was ultimately cancelled.

Kant underscored that India has a comprehensive EV policy in place and expects all companies to adhere to its guidelines. “You can't have policies for individual companies. The policy for EVs has been announced," he told ANI.

This suggests that Tesla may have sought special concessions from the Indian government, a request that was seemingly declined. India's EV policy, designed to attract investments in domestic manufacturing, incentivises companies to set up production facilities within the country.

Key aspects of the policy include:

- Minimum Investment Threshold: A minimum investment of Rs 4,150 crore (USD 500 million) is required.

- Domestic Value Addition (DVA) Mandate: Manufacturers must source at least 25% of their vehicle components domestically within three years of setting up a manufacturing unit, increasing to 50% within five years.

- Import Concessions: Companies setting up EV passenger car manufacturing units can import a limited number of vehicles at a reduced customs duty of 15% for five years. This concession applies to vehicles priced at USD 35,000 and above.

The total number of EVs eligible for import under this concession is determined by the investment made or capped at Rs 6484 crore, whichever is lower. For investments exceeding USD 800 million, a maximum of 40,000 EVs can be imported, with a yearly limit of 8,000 vehicles.

Kant acknowledged the significant transformation taking place in the automotive industry, driven by the global shift towards sustainable transport. He told ANI, "There is a huge disruption taking place, and it's important that we accelerate the pace of electric vehicles." He further mentioned the government's substantial allocation of Rs 57,613 crore for procuring 10,000 electric buses, expecting this to spur the growth of the electric two-wheeler, three-wheeler, and bus manufacturing sectors.