India is changing its EV policy to attract foreign automakers, including Toyota (TM, Financial) and Hyundai (HYMTF, Financial), after Tesla (TSLA, Financial) decided not to assemble cars in India. New rules, to be implemented by March, expand tax incentives for production of electric vehicles at existing factories and for production of vehicles built on another line if they meet local content requirements.
Previously, the incentives were intended for new manufacturers with at least $500 million in investments and 50 percent components for the state. However, further investments only in EV machines in those factories will also count once the minimum income from EVs has been reached. These changes are in line with India’s intention to increase demand for electric vehicles and attract additional local and international players to the country’s emerging electric vehicle market.
India’s venture is in line with green mobility efforts and could make the country an attractive destination for electric vehicle manufacturing in Asia.
This article first appeared on GuruFocus.
