Amidst anticipation for the forthcoming guidelines of India’s new Electric Vehicle (EV) policy, Businesses are getting ready to take advantage of the potential it offers. The strategy highlights a deliberate attempt to support localization and home production by providing incentives like lower customs duties on certain automotive imports.
According to the regulatory framework, businesses who want to manufacture electric vehicles (EVs) have to promise to establish facilities in three years and reach a 50% localization level in five.
To start commercial manufacturing in India, a minimum investment of ₹4,150 crore ($500 million) is required. This programme is in line with the September 2021 launch of the Production Linked Incentive (PLI) Scheme for the Automotive Sector, which has attracted substantial investor interest and surpassed initial investment expectations. Estimates show that the project has drawn a proposed investment of INR 74,850 Cr ($ 9 Bln), compared to the target estimate of INR 42,500 Cr ($ 5.1 Bln) over five years.
Founders and investors share their perspectives on these developments; as significant steps towards reinforcing India’s stature as a global manufacturing powerhouse –
1. Revfin Services:
Sameer Agarwal, CEO & Founder of Revfin, expressed his enthusiasm, “We at Revfin anticipate the upcoming EV policy guidelines with great optimism as it will be an opportunity for the entire EV ecosystem to transition from side-lines to the mainstream.”
“The evolving regulatory framework, as we see is expected to expand capacities in brownfield facilities and enhance capabilities, thus pushing the agenda of ‘Make – in – India’ mission. The new policy will not only bring Investments, but also globally proven Technologies to the country in such brownfield projects to future-proof manufacturing and product development initiatives. By augmentation of existing infrastructure, the EV industry will gain a competitive edge, making adoption more accessible. The cost advantage will allow easy adoption of electric vehicles, increasing their accessibility for a wider range of consumers. This will not only drive demand but also encourage sustainable mobility solutions, aligning with our collective efforts towards a greener future.” explained Aggarwal.
Revfin is India’s leading digital lending platform focused on sustainable mobility vertical (EVs) and related ecosystems. “As pioneers in EV financing, we are committed to facilitating seamless access with customised financing & leasing options, thereby empowering individuals and businesses to embrace electric mobility. The upcoming EV policy guidelines will be a catalyst for revolutionizing sustainable mobility, driving the EV industry to innovate and lead the charge towards a greener, more efficient future,” added Aggarwal
2. ARENQ:
V.G Anil, CEO, ARENQ, a leading manufacturer of batteries and energy storage solutions, says “EV policy guidelines will play a pivotal role in shaping the future of sustainable mobility. These guidelines should prioritize technological innovation, promote research and development initiatives, and ensure a supportive ecosystem for the growth of the EV batteries industry. By fostering collaboration between government, industry stakeholders, and environmental advocates, we can drive positive change and accelerate the transition towards a greener and more electrified transportation sector.”
3. Green Frontier Capital:
Karan Mehta, Venture Principal, Green Frontier Capital, a venture capital fund pioneering sustainable finance in India, said “India has taken a significant step towards promoting Green Policy in the region and the introduction of its new EV Policy is another example of it. This move by the government, which has not been seen in the automobile sector for many years, is expected to accelerate the transition to cleaner mobility solutions. The investment thresholds associated with this policy are expected to attract new companies that are leaders in Western markets, creating new green jobs in India, as well as fostering strong technological and strategic partnerships with OEMs in India to set up or modify their existing vehicle manufacturing plants.”
“In addition to the PLI scheme for batteries and other components, the government is paving the way for India to become a manufacturing powerhouse in the electric mobility segment. At Green Frontier Capital, we are committed to supporting our companies in the Electric Mobility sector. We continue to provide catalytic capital to more companies that are creating and commercializing key technologies and adoption solutions across the Electric Mobility sector.”
