India’s government is set to limit investment in electric vehicle (EV) charging infrastructure to 5% of a company’s total investment, as part of its efforts to attract foreign automakers. The move aims to prioritize car manufacturing over charging networks, amid growing concerns over the lack of fast chargers in the country. Tesla, which has finalized two locations for showrooms in India, is expected to enter the market with imported cars.
Under the new policy, companies will only be able to use 5% of their EV investment for creating charging infrastructure, even if they spend more on building power networks. The government aims to encourage automakers to focus on manufacturing and meeting minimum turnover targets, rather than just investing in charging infrastructure.
India’s EV market is still in its nascent stages, with many buyers hesitant to purchase electric cars due to the limited availability of fast chargers. Tesla has expressed concerns over India’s tariffs for cars, but plans to import cars and sell them in the country despite these high costs.
The government will finalize the new policy next month, after consulting with carmakers and other stakeholders. Other foreign automakers such as Hyundai and Toyota have also shown interest in manufacturing EVs in India, at their existing and new factories.
Source: https://www.reuters.com/world/india/india-cap-investment-ev-charging-tariff-relief-tesla-entry-looms-document-shows-2025-02-21