The electric vehicle market is continuously growing in India. The government wants the EV industry to grow rapidly in the country and India to become the world’s largest EV manufacturing hub. With this thinking, Modi government has introduced a new EV policy.
The special thing is that this policy was brought at the same time when talks regarding Tesla’s investment and setting up a factory in India were stuck in limbo.
The government held a lot of talks to bring Tesla to India, but no consensus could be reached between the two on issues related to import duty, production setup and local investment. Tesla wanted a deal on its own terms, and India refused to make major changes to its rules.
The result was that Tesla backed out — and the government immediately New EV Policy Presented, which creates an equal opportunity not only for Tesla but for every company in the world.
So let us understand what this new EV Policy is, what are the special features in it, and how it can change India’s EV industry.
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🇮🇳 Why did Tesla retreat? little story
Tesla demanded that India reduce the custom duty on imported electric vehicles from 100% to just 15%. India clearly said – “First set up a factory in India, start local production, then we will give tax relief.”
Tesla wanted the market immediately, the government wanted local manufacturing. The deal got stuck here.
As soon as Tesla withdrew, the government made a policy in the interest of the country which any global company Can follow and make EV in India – not just Tesla.
🚗 Modi government’s new EV policy – what is special?
This policy has been specifically designed to-
- EV manufacturing to increase in India
- investment came
- create jobs
- And the EVs manufactured in the country can compete globally.
The new EV Policy means in simple language: The government will provide tax relief and import benefits to any company that manufactures EV in India. But in return they will have to make huge investments in the country.
🔑 Highlights of the new EV Policy – in simple language
1. Investment of at least ₹4,150 crore required
For any global company to set up an EV factory in India, at least Rs 4150 crore Will have to invest. This investment should not be just on paper but should be real expenditure on land and machinery.
2. The company will have to start production in 3 years
The government does not want empty promises – it wants work. Therefore the new policy says that:
- Factory should be operational within 3 years of application
- At least in India in 5 years 25% local value addition have to achieve
3. Permission to import limited number of EVs at low tax
The government said that EV companies can import some vehicles annually at lower duty.
But this exemption will be available only to those companies which will invest in India.
Meaning – No company can sell in India like Tesla just by looking for cheap imports.
First invest, then reap the benefits.
4. Emphasis on local manufacturing
In the new policy the government has made it clear that:
- India will not be just a “buying” country
- Rather, it wants to become a country that “makes” EVs in the world.
Therefore, every company will have to gradually increase local manufacturing by 50%.
🌍 What kind of companies will benefit?
The new EV policy is not just for Tesla. This is for all global brands, like-
- BMW
- Mercedes
- Hyundai
- Come on
- BYD
- VinFast
- Rivian
- Lucid Motors
Some of these companies are already selling EVs in India, some are planning to set up factories in India.
Niti Aayog and the Ministry of Heavy Industries believe that this policy can attract investment worth thousands of crores in India in the next 10 years.
What will be the benefit to Indian customers from this policy?
1. EV prices will come down
When companies produce in India, then—
- Import duty will be reduced
- Logistics expenses will reduce
- Parts will be available locally
This will cause EV prices to fall.
2. You will get more options
In India in the next 3–5 years:
- Sports EV
- luxury EV
- Mid-segment EV
- Cheap Urban EV
Everyone is expected to come.
3. Fast-charging network will expand rapidly
If companies sell EVs, they will also install charging infrastructure. This will increase high-power chargers that charge in 10–15 minutes.
4. Performance and quality of vehicles will be better
Because global companies will bring their best technology to India.
🇮🇳 What will be the benefit to the country?
1. Millions of jobs
In EV factories—
- Engineer
- machine operator
- designer
- Supply chain workers will all get work.
2. India will become EV export hub
EVs can be sent from India to Africa, Middle East and South-East Asia. That means we will not only buy cars, we will also sell them.
3. Oil import bill will reduce
India spends billions of dollars every year in buying oil. This will reduce as EV increases.
4. Pollution will reduce
Air quality will improve in big cities.
💥 Tesla’s loss or India’s advantage?
Many people think that Tesla’s absence is a loss for India. But in reality the government, while not being “Tesla-dependent” Fair and Universal Policy Created – which gives every global company an opportunity to come to India.
The government has a clear message:
“India welcomes global companies, but manufacturing in the country is necessary.”
Tesla can still come to India — but only under the rules of the new EV policy.
🔥 Conclusion: New EV Policy will bring EV revolution in India
Tesla’s retreat didn’t stop the government — in fact, the government introduced an EV policy that could make India one of the top 3 EV hubs in the world in the next 10–15 years.
From the new EV Policy—
- Global companies will come to India
- EV prices will come down
- Charging stations will increase
- Will get employment
- And India will become an EV power on its own
That is, this policy is not just a rule, but India’s EV revolution Is the beginning of.
