Archive · 5 Jun 2025
India's EV Push: Import Duty Changes and the Need for Tech Transfer
India is trying to get more people to buy electric cars by making it easier to import them, but only if companies invest in making the cars in India too.
This is a plan to reduce the import tax on fully built EVs.
To make sure things are made in India, the government wants companies to use local parts and technologies.
The current policies fall short of enabling access to crucial battery tech which requires a different approach.
China did this by letting foreign companies partner with local ones, which helped it become the world leader in electric cars.
India introduced a 15% import duty on electric vehicle (EV) completely built-up units.
Manufacturers must invest a minimum of ₹4,150 crore over three years to localize manufacturing.
The scheme aims for a 25% domestic value add within three years, increasing to 50% in five.
Each manufacturer can import a maximum of 8,000 units annually under the scheme.
The article discusses the need for technology transfer to boost EV adoption in India.
- Who
- The Indian government
- What
- Introducing a concessional import duty on EVs
- When
- June 2, 2025
- Where
- India
- Why
- To boost EV adoption and encourage local manufacturing.
Current EV Policy
Needed Policy Shift
Technology Transfer
Current EV Policy
The current policies do not adequately address technology transfer for EVs.
Needed Policy Shift
To accelerate EV adoption, India needs to facilitate technology transfer similar to what China has done with joint ventures.
- Concessional Import Duty
- 15% on completely built-up units
- Minimum Investment
- ₹4,150 crore
- Investment Timeframe
- 3 years
- Domestic Value Add
- 25% in three years, up to 50% in five years
- Maximum Import Units Annually per Manufacturer
- 8,000
- Import Duty Scheme Duration
- 5 years