Skoda-Volkswagen and Mercedes Benz announced investment plans for electric vehicles in India, Govt sources said. The Department of Heavy Industry (MHI) will give SOP on this scheme to promote the production of electrical cars in India (SPMPCI), they said.
An official announcement is expected in the near future.
Meanwhile, Minister of Union Heavy Industries HD KMaraswamy said on Monday that Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia showed interest in the production of electric cars in India near SPMPCI. He added that Tesla was not interested.
“Tesla, we don’t really expect their interest … They are not interested in producing in India,” Kumarasvy said.
The scheme was reported on March 15, but the recommendations were issued on Monday.
The window that submits the application to the scheme will open in a couple of weeks, officials said. To encourage world manufacturers to invest, approved applicants will be allowed to import fully built units (CBUS) electrical four -wheeled vehicles with a $ 35,000 minimum cost with a reduced customs duty of 15 percent over the five -year application date.
Applicants must make a minimum investment of Rs 4150 in accordance with the regimen provisions.
The application window through the application that invites the notice will remain open for 120 days or more. The Ministry of Heavy Industry reserves the right to open the application window as needed by March 15, 2026.
Domestic players such as Tata Motors and Mahindra & Mahindra have invested millions of dollars in local EV production, still to come, and lobbying from reducing their duties. Indian sales in India, where Tata Motors prevail, made up only 2.5 percent of the total vehicle sales of 4.3 million in 2024. The government wants to increase it to 30 percent by 2030.
