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To get subsidy , get localised.

Updated: May 27, 2019



The latest draft guidelines on Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles Scheme list components that need to be built locally, with specific deadlines.

The guidelines, issued by the department of heavy industry (DHI) which implements the scheme, cover manufacturers of electric and hybrid two-wheelers, three-wheelers, rickshaws, four-wheelers and electric buses. These are some of the rules that are listed below.

1.All electric vehicle and hybrid manufacturers must localize manufacturing of wheel rims integrated with hub motor from 1 October 2019.
2.The HVAC units (heating, ventilation and air conditioning) for electric cars are also scheduled for indigenisation from that date. Other key components such as electronic throttles, vehicle control unit, on board charger for all categories, and electric compressor and the DC charging inlet for electric cars and buses must be localised from 1 October 2020.
3.Despite the scheme’s accent on localization, the guidelines allow imports of key battery components to overcome immediate technological challenges and manage costs. Imports of lithium ion cells and battery packs, which attract a basic 5% import duty, are slated to rise to 10% and 15%, respectively, from April 2021 to drive battery suppliers to localize the technology in India.
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