‘EV policy to aid launching of green, premium-quality SUVs’

NEW DELHI: Vietnam’s electric car maker VinFast Auto on Monday said India’s new electric vehicle policy that provides import duty concessions for companies setting up manufacturing units in the country with a minimum investment of $500 million will allow it to introduce a wide variety of eco-friendly premium-quality SUVs at inclusive prices.

The new electric vehicle (EV) scheme aims to drive large investments in manufacturing, create competencies and upskilling, set up a robust supply chain and offer consumers world-class, zero-tailpipe emission vehicles, VinFast India CEO Pham Sanh Chau said in a statement.

“This forward-looking policy helps us introduce a wide variety of smart, green, premium-quality SUVs, at inclusive prices, along with outstanding aftersales policies,” he added. Chau further said, “With a long-term growth commitment in India, we have pledged an expenditure of $500 million, which includes the electric vehicle manufacturing facility in Tamil Nadu.” In February this year, VinFast - a major competitor to American EV had stated that it would invest Rs 4,000 crore over the next five years in the initial phase, which will generate 3,500 jobs in the Tuticorin region.

The plant will have a capacity to produce 1.50 lakh vehicles once it becomes operational.

Ola Electric founder-CEO Bhavish Aggarwal in a post on X, also lauded the new EV policy, saying it is a win for the Make in India initiative.

“Great to see the Indian government’s progressive decision to lower import duties on EVs for companies investing in India. This is a win for the #MakeInIndia initiative & strengthens our manufacturing ecosystem, propelling India towards a greener future. India will become the global EV hub of manufacturing and technology!,” he wrote.

Society of Indian Automobile Manufacturers president Vinod Aggarwal said a holistic view has been taken by the Centre in the best interests of the country.

Under the new EV policy, import duty sops will be given to those setting up manufacturing units in India with minimum $500 mn investment