China has a lot of dominance in the electric vehicle segment, but it does not make any difference to India. Undoubtedly, global companies can get good investment opportunities in India through electric vehicle policy. But it seems clear in the electric vehicle policy that the government is not in favor of giving exemption to Chinese companies.
There has been a discussion going on for a long time regarding the entry of Elon Musk’s Tesla in India. The path seems to be clear for Tesla’s entry in India. India’s upcoming electric vehicle policy can be prepared in such a way that this policy can attract global companies to invest in India.
You have learned one aspect of electric vehicle policy that global companies can be attracted to invest in India. But there is another side to the coin and that is that Chinese companies will not get the benefit of exemption under the Electric Vehicle Policy.
According to a Money control report, Chinese companies may be kept out of the benefits of the electric vehicle policy due to national security concerns. Under the policy, it is necessary to fulfill certain conditions for 15 percent rebate, such as any company will get the benefit of rebate only when Rs 4150 crore is invested in India.
China and Chinese companies will not get the benefit of exemption in electric vehicle policy. There is no possibility for Chinese electric car manufacturer BYD because the company will not be able to meet the FDI requirements under the Electric Vehicle Policy. If any Chinese company still wants to invest in India, then they will have to pay duty rate ranging from 70 to 100 percent.
China Electric Vehicles: China’s dominance in EV
China’s position in the global EV market is very strong, yet India is not in favor of exempting Chinese companies from the electric vehicle policy. According to data from the International Energy Agency, China is at the forefront in the production and export of electric vehicles. China had delivered 35 percent electric vehicles in 2022.
