It is speculated that the car makers will have to invest over $270 million, over five years, to qualify for incentives
India will be offering $3.5 billion as incentives to auto companies and part manufacturers under a revised scheme notes a report by Reuters. Earlier incentives worth $8 billion were on cards.
The earlier scheme, as per Reuters was withdrawn to focus on electric vehicle and hydrogen fuel powered vehicles. The reason behind the change in stance seems encouraged from focus on clean and green energy. As a result the scheme might only benefit a handful of companies now.
Tata, Mahindra, TVS and Hero Electric are the only noticeable brands operating on the EV front in the country at the moment. The scheme is a part of other production linked incentive schemes (worth over $27 billion) that the government has launched to attract global manufacturers to India.
“Under the revised scheme, companies that qualify will get cashback payments equivalent to around 10%-20% of their turnover for EVs and hydrogen fuel cell cars,” Reuters quoted a spokesperson.
It is speculated that the car makers will have to invest over $270 million, over five years, to qualify for incentives. Auto component makers, on the other hand might get incentives based on production of components like sensors and radars.
The details of the scheme are in the final stages of being drafted and the same might be made public as early as the next week. Maruti Suzuki, the largest car selling brand in the country, has no immediate plans to launch EVs or hydrogen powered vehicles in India.
