Government promotes local EV production to boost employment

The government is working on a plan to promote making electric vehicles in the country, aiming to ensure fair competition in the industry. This will also result in more jobs and lower car prices.

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The government is formulating a policy to encourage the domestic production of electric vehicles, with the goal of creating fair competition within the industry. Domestic production will additionally lead to increased job opportunities and contribute to the reduction of overall automobile costs.

Under the purview of the Ministry of Commerce and Industry, the Department for Promotion of Industry and Internal Trade (DPIIT) has initiated talks regarding the implementation of a subsidy program for electric four-wheeler manufacturers, contingent on their investments in local vehicle production.

According to a senior government official, “unlike FAME II (Faster Adoption & Manufacturing of Electric Vehicle), which is an upfront subsidy paid to consumers, this will be a manufacturing incentive.”

“The government is looking at extending incentives to vehicle manufacturers linked to the investments made by them to manufacture electric cars locally,” he added.

Discussions are taking place to figure out the minimum amount of money that car manufacturers need to invest in order to receive advantages from the program, as the government assesses the overall budget for the scheme. This happens as foreign companies like Tesla and VinFast, as well as local automakers like Maruti Suzuki, Hyundai Motor India, Kia, Tata Motors, and Mahindra & Mahindra (M&M), are planning to introduce many electric vehicles in the Indian market.