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India's EV Policy Sparks Optimism, Foresees Surge in Investments

India's EV Policy Sparks Optimism, Foresees Surge in Investments
Amidst anticipation for the forthcoming guidelines of India's new Electric Vehicle (EV) policy, companies are preparing to leverage

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India's new Electric Vehicle (EV) policy is sparking optimism and foresees a surge in investments from companies looking to take advantage of the opportunities it presents. The policy offers incentives such as reduced customs duties on limited car imports and emphasizes encouraging domestic production and localization efforts. Companies venturing into EV manufacturing must commit to setting up facilities within three years and achieving a localization threshold of 50% within five years, with a minimum investment of ₹4,150 crore ($500 million) mandated for initiating commercial production in India. The initiative aligns with the Production Linked Incentive (PLI) Scheme for the Automotive Sector, which has garnered significant investor interest. Founders and investors are expressing their enthusiasm for these developments, seeing them as significant steps towards reinforcing India’s stature as a global manufacturing powerhouse. The new EV policy is expected to drive the transition to cleaner mobility solutions and attract new companies that are leaders in Western markets, creating new green jobs in India and fostering strong technological and strategic partnerships with OEMs in India to set up or modify their existing vehicle manufacturing plants.