India Approves New EV Manufacturing Scheme with Import Duty Waivers to Attract Foreign Automakers

India has approved a new scheme to promote domestic EV manufacturing by waving import duties for EVs over $35,000 for 5 years.

Companies must invest $500 million in India, set up a local factory, and meet localization targets to qualify.

The scheme allows automakers to import up to 40,000 EVs duty-free over 5 years, capped at 8,000 per year.

The scheme could enable Tesla to start importing vehicles while it sets up a factory to build a cheaper EV model in India.

The deal seems like a reasonable compromise for Tesla to enter the large Indian auto market, but the 40,000 unit cap may be limiting.