Foreign Car Firms Eye Trade Deals for EV Tariff Reduction

Lack of clarity on EV scheme leaves automakers waiting on investment plans

- Ayaan Kartik & Nehal Chaliawala

NEW DELHI/MUMBAI: In March 2024, foreign carmakers took note when India proposed low-duty imports for a few thousand electric cars, if they promised to invest a specific amount here. But with the Centre yet to finalize the scheme's guidelines, manufacturers have shifted their sights to expected duty reductions in free trade agreements (FTAs) under discussion, three industry executives said.

The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), dubbed the "Tesla Policy", was seen as part of New Delhi's attempt to attract the US carmaker after its CEO Elon Musk publicly criticized the country's high import duties on automobiles.