The Indian automotive industry is on the cusp of transformation and can benefit from embracing e-mobility, says HD Kumaraswamy, ET Auto

New Delhi: Heavy Industries Minister HD Kumaraswamy has highlighted the transformative potential of the Indian automotive industry and said the country has a lot to gain by adopting electric mobility.

“The Indian automotive industry is at the threshold of a transformational era,” he said while addressing the Society of Indian Automobile Manufacturers (SIAM) event titled ‘Workshop on Skill Development for Electric Vehicle Charging in Indian Automotive Sector’ as the chief guest.

Kumaraswamy noted that the global shift towards electric vehicles (EVs) is not just a passing trend but a significant revolution. “This shift promises to redefine our relationship with a skilled and trained workforce,” he added, underlining India’s position as one of the world’s largest automotive markets.

“India has much to gain from embracing electric mobility,” Kumaraswamy added. “It is a journey that promises economic growth, environmental sustainability and enhanced energy security,” he said.

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Talking about the future of e-mobility in India, Kumaraswamy mentioned that the sector is poised for significant growth in the coming years.

This growth is expected to be driven by advances and improvements in various electric vehicle technologies, increasing consumer awareness and supportive government policies.

“The Indian government is taking several initiatives to promote faster adoption of electric vehicles in the country,” Kumaraswamy said. These efforts are aimed at ensuring that India not only keeps pace with global trends but also leads the way in the sustainable transformation of the automotive industry.

India’s new electric vehicle policy, introduced recently, includes provisions to encourage setting up manufacturing plants in India. Under the government’s electric vehicle program, the government aims to make India the preferred manufacturing location for electric vehicles equipped with cutting-edge technology.

The policy requires a minimum investment threshold of INR 4,150 crore (US$ 500 million) and encourages manufacturers to achieve significant levels of domestic value addition (DVA), the government mandates that by the third year of setting up a manufacturing unit, at least 25% of the components used to manufacture vehicles must be sourced domestically. This level of localisation is expected to increase to 50% by the fifth year of operations.

For vehicles valued at USD 35,000 or above, a 15% customs duty will be imposed for five years if the manufacturer sets up a manufacturing facility in India within three years.

The total number of EVs allowed for import under the policy will be capped based on the investment made or a maximum of INR 6,484 crore, whichever is lower. If the investment exceeds USD 800 million, a maximum of 40,000 EVs can be imported, not exceeding 8,000 per year, as per the policy. Unused import limits can be carried forward.

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