Companies like Mercedes and Skoda will make electric cars in India; Tesla took a U-turn on making EV

They would be subject to paying just 15 percent duty on this import. A minimum price of the vehicle must be $35,000, and the endorsed company can import up to 8000 electric cars per year. Currently, a duty of 75 percent is levied on the import of electric cars.

In this way, the company will get the benefit of Rs 6484 crore in import duty in five years. But to avail this benefit, they will have to invest at least Rs 4150 crore in three years for manufacturing electric cars in India. Companies can also spend a maximum of five percent of this amount on setting up charging stations.

In the first three years, they will have to add at least 25 percent value to the electric car, and in the next five years, the limit of value addition will have to be increased to 50 percent. To avail the scheme, the company will also have to provide a bank guarantee of Rs 4150 crore. So if they do not manufacture after taking advantage of the import duty, then the government will confiscate this amount.

The value of land has not been included in the investment of Rs 4150 crore. Kumaraswamy said that Tesla is no longer showing interest in manufacturing electric cars in India, and no inquiry has been made from their side regarding electric car manufacturing. While other companies are in touch with the ministry.

He said that interested companies can start manufacturing electric cars in India in the next two years. This will create an ecosystem for manufacturing electric cars in the country. Currently, the share of electric cars in India's total car sales is only two percent. The government is going to install 72,000 charging stations by next March.