Archive · 6 Jun 2025
India Lowers EV Import Duties, Eyes Incentives for Magnet Production
India is trying to get more companies to make electric cars there.
They've lowered the tax on imported EVs if companies invest a lot of money to make cars in India.
Companies have to invest a minimum amount to benefit from the reduced import duty.
The government is also thinking about giving money to companies that make special magnets used in EVs and other things, aiming to make India less reliant on imports.
India has reduced import duties on electric vehicles (EVs) to 15% to attract global automakers.
Carmakers must invest at least Rs 4,150 crore (approx. $500 million) in India within three years.
The reduced duty applies for five years, capped at 8,000 imported EVs annually, priced above $35,000.
Participating companies must meet annual turnover and local manufacturing targets.
The government is also considering a PLI-like scheme for rare earth magnet manufacturing.
- Who
- The Indian government and global automakers.
- What
- Reduced import duties on EVs and a potential PLI scheme for rare earth magnets.
- When
- The EV import duty cut is effective now; the magnet scheme is under consideration.
- Where
- India.
- Why
- To boost EV manufacturing, reduce import dependence, and encourage self-reliance in critical materials.
- EV Import Duty Reduction
- 15%
- Minimum Investment for Automakers
- Rs 4,150 crore ($500 million)
- Imported EV Price Threshold
- $35,000 (approx Rs 30 lakh)
- Duty Benefit Duration
- 5 years
- Annual EV Import Quota
- 8,000 units
- Tesla's Reported Plan
- To open showrooms only
