Leading global car manufacturers such as Mercedes Benz, Skoda-Volkswagen, Hyundai, and Kia have expressed interest in making EVs in India. This announcement was made by Union Heavy Industries Minister HD Kumaraswamy on Monday. The companies shared their interest during discussions held with the Indian government regarding a new scheme aimed at boosting local EV production.
New Scheme Announcement
The interest shown by these companies is linked to the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India’. Although the scheme was officially announced on March 15 last year, the detailed guidelines were released only now. The government aims to attract major global players to invest and set up EV manufacturing facilities in the country.
According to ministry officials, the application process under this scheme will begin in the next few weeks. It is still uncertain which companies will officially apply, but the interest shown by major names is seen as a positive start. Minister Kumaraswamy stated that Mercedes Benz, Volkswagen, Skoda, Hyundai, and Kia have already shown early enthusiasm for the initiative.
Incentives To Attract Investment
To encourage investment, the scheme allows approved companies to import Completely Built Units (CBUs) of electric four-wheelers (e-4Ws) at a significantly reduced customs duty rate. These imports must have a minimum CIF (cost, insurance, and freight) value of USD 35,000. The reduced 15 percent customs duty will apply for five years from the date of application approval.
The government hopes that this scheme will not only attract foreign direct investment but also strengthen the EV ecosystem in India. With rising demand for electric vehicles and increased focus on clean energy, India sees this move as a critical step in reducing carbon emissions and supporting innovation in the auto sector.
Industry Response Looks Positive
The positive response from global automotive giants signals growing confidence in India’s EV market potential. As the application window opens soon, the coming weeks will show which companies take the next step toward establishing manufacturing units. This initiative is expected to play a major role in shaping the future of EV manufacturing in India.
