India gets the wheels moving on a special plan for high-end EVs

economictimes.indiatimes.com:

EV strategy on the lines of a phased manufacturing plan (PMP), ToI reported on August 14. This is part of a plan to woo global auto biggies such as Tesla in the high-end electric vehicles market. The new plan is likely to be company-agnostic and cater to the needs of the entire industry, besides playing a role in boosting the EV ecosystem in India, the report said.

The plan is based on the basic premise that a phased manufacturing programme will help companies slowly raise the level of indigenisation. The govt expects its incentives to meet domestic demand besides creating a base for exports. These incentives are also expected to help develop capacity in a new segment, without negatively impacting domestic companies like Tata Motors and Mahindra.

It may be noted here that these two companies are putting big money into the electric vehicle space. According to the report, the new plan will bring a graded duty structure to boost local manufacturing. This plan has the potential to help fast-track India's transition towards EV, at the same time boosting an emerging segment, sources cited by ToI said.

Tesla is currently making plans to diversify beyond China, which is one of its major production bases. There have of late been enough indications that the Elon Musk-led EV giant has been seeking to «bring its entire ecosystem, including vendors, to India», officials told TOI. As per the report, Tesla is already sourcing goods worth around Rs 12,000 crore from the country.