Modi govt finalises new EV scheme, offers import tax cuts for local production

India on Monday announced a scheme that includes significant import tax cuts for foreign automakers that commit to investing in manufacturing electric cars in the country.

Under a revamped scheme, companies will be allowed to import a limited number of electric cars at a lower import duty of 15 per cent versus the current 70 per cent duty if they commit to investing roughly Rs 4,149 crore ($486 million) to build EVs in the country, the ministry of heavy industries said in a statement.

Carmakers including Mercedes Benz, Volkswagen , Skoda, Hyundai and Kia have already shown interest in the new policy, a federal minister told reporters in a media briefing on Monday.