The government will support regional EV production in an effort to increase job creation.

The government is developing a policy to encourage the local manufacturing of electric cars in order to create a fair playing field for the industry and stimulate job growth while reducing overall car prices.

The Department for Promotion of Industry and Internal Trade (DPIIT) is in discussions to establish a scheme that offers incentives to electric four-wheeler manufacturers based on their investments in domestic production.

Unlike the existing Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India II (FAME II) subsidy scheme for consumers, this new initiative focuses on manufacturing incentives for automakers. The government is considering the investment threshold required for automakers to benefit from this scheme.

 This effort aligns with the influx of foreign and domestic automakers, like Tesla, Maruti Suzuki, Hyundai, Kia, Tata Motors, and Mahindra & Mahindra, who are planning to introduce electric vehicles in the Indian market.

Commerce & Industry Minister Piyush Goyal emphasized the need for a level playing field and equal treatment for all industry participants in the electric vehicle sector.