India is set to invite applications for its landmark electric vehicle (EV) manufacturing policy, aimed at attracting global automakers with significant incentives. Announced in March 2024, the policy allows companies investing at least Rs 41.5 billion (approx. USD 500 million) to set up a local manufacturing plant within three years.

In return, they can import up to 8,000 electric vehicles annually at a reduced 15 percent import duty, significantly lower than the current 70 percent. The application window is expected to open later this month and will remain open until 15 March, 2026. This initiative targets leading EV makers like Tesla, which has long criticized India’s high import tariffs.

The country hopes to become a major EV hub, especially as global demand softens and India’s market continues to expand. To filter out non-serious applicants, the Modi government has added stringent financial eligibility norms. Approved companies must generate at least Rs 50 billion in revenue by year four, and Rs 75 billion the following year, or face penalties of up to three percent of the revenue gap. The policy could reshape India’s EV landscape and challenge local players.