India Renews Tesla Push as EV Policy Registrations Begin

• India is inviting Tesla to invest in EV manufacturing under SPMEPCI.
• Embassies will be approached to attract global EV investments.
• VinFast is ineligible for incentives, with border restrictions unchanged.

India is reinvigorating its quest to lure Tesla to make a local investment in producing electric passenger cars by introducing a new policy. Up till now, Tesla's enthusiasm has been underwhelming, notwithstanding Elon Musk's prior indications of interest, provided there were bigger concessions.

Instead, the American electric vehicle behemoth decided to import its cars and sell them through company-owned showrooms. So far, this has not hindered the Indian government's aspirations for Tesla.

When H D Kumaraswamy, Union Heavy Industries Minister, launched the webpage for the registration of the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), he shared that his ministry would begin to engage with several embassies, including that of the USA, seeking investment opportunities under the scheme. He stated, "Tesla can also apply, we are still open to Tesla".

Also Read: Gujarat Unveils Policy to Boost Electronics Manufacturing

He said it would also communicate with the embassies of Vietnam, Germany, Czechoslovakia, and the UK, summarising the policy and while inviting companies there to set up electric passenger vehicle manufacturing in India.

The minister clarified that all existing restrictions on investments from countries that share a land border with India will remain in place. A senior official in the ministry stated that VinFast, a Vietnamese company that already has a factory in India producing electric passenger cars, will not be eligible for incentives due to SPMEPCI.

The official said, "Their investment has already been made. Under the policy, if they come up with fresh investment of $500 million - even if it is in an existing location - only then are they eligible for concessional import duties provided under the new policy".

VinFast executives have previously indicated hope that their substantial investments would allow them to be eligible for the benefits of concessional import duty through the new policy.