India considering a five-year tax cut on EV imports to woo Tesla
India is contemplating of cutting import taxes on fully built electric vehicle units for a maximum of five years in an effort to lure companies like Tesla Inc. to market and eventually produce their vehicles there.
According to reports, the Indian government is developing an electric vehicle policy that would let international car manufacturers to import battery-powered cars at reduced tax rates provided they agreed to eventually construct them in India.
A final decision regarding the policy’s parameters has not yet been made. Elon Musk, the CEO of Tesla, is scheduled to meet with Indian Trade Minister Piyush Goyal to talk about the company’s intentions to establish a factory in South Asian nation.
Editor’s Note: It is a very good move and will help global EV companies and its allied product companies to consider India market. It is also worth noting the mention of Indian Government developing an Electric Vehicle policy allowing international car manufacturing companies to import cars at a reduced tax rates.
Car, mobile phone, and FMCG dealers seek laws to protect them in company deals
In order to safeguard the interests of “nearly 30 million dealers and distributors” who are compelled to operate under “one-sided terms and conditions,” three of India’s largest consumer-facing distributor and dealer groups—representing the FMCG, auto, and mobile phone sectors—have joined together to seek legal reforms.
There are no existing laws to compensate distributors and dealers in such cases.
In order to safeguard their interests, distributors and dealers from a total of eighteen industries—including electronics, paper, plastics, and pharmaceuticals—have unitedly expressed their worries and demanded new laws and regulations.
Editor’s Note: Concerns have been voiced by these associations regarding the absence of rules that provide compensation to dealers and distributors in situations where corporations abruptly decide to dissolve their partnership. They’ve demanded new regulations and guidelines to safeguard their rights. In the automobile sector, this demand was raised few years back and now Electronic dealers have also joined. The development on this will be something to be watched for all product companies who operate in India through dealership.
FAME – III is coming; may lead to changes for EVs
The government is thinking about enforcing stronger regulations to force the use of local components to support domestic EV manufacture and cases of companies breaking phased manufacturing program (PMP) rules by putting together cars with imported parts.
As part of its proposed FAME-III, the Union Ministry is thinking of eliminating PMP and implementing a 505 domestic value addition (DVA) requirements.
Editor’s Note: The subsidy is probably going to promote research and development in the field of renewable energy in addition to light commercial vehicles.
India to invite bids for $960 million battery-making program
According to sources, India intends to request bids for an incentive program worth 80 billion rupees (about USD 960 million) to promote the development of batteries for electric vehicles.
According to exclusive reports, the program will mandate that successful bidders establish advanced chemistry battery installations capable of producing 20 gigawatt hours of electricity in total. Next month, they claimed, the government will invite proposals from possible investors.
During a consultation meeting with government officials, companies expressed interest, including Larsen & Toubro Ltd., Amara Raja Energy & Mobility Ltd., LG Energy Solution Ltd. of Korea, and Mahindra & Mahindra Ltd.
Over a five-year period, the government will provide incentives to companies for the sale of locally manufactured batteries.
Editor’s Note: In the battery manufacturing and export business, India is expanding quickly; during the next five years, a compound annual growth rate (CAGR) of more than 10% is predicted. With a total production value of over USD 10 billion, the sector is valued at over USD 16 billion. This development is a very good opportunity for companies from Taiwan to consider.
Kaynes to invest Rs 2,850 cr in chip unit in Hyderabad, Rs 830 cr in Mysuru
A leading electronics manufacturing services provider, Kaynes SemiCon, a 100% subsidiary of Kaynes Technology, plans to invest Rs 2,850 crore in a chip factory located in Hyderabad and Rs 830 crore in Mysuru.
Hyderabad will host the groundbreaking ceremony for the facility, which will feature 13 lines for outsourced semiconductor assembly and testing (OSAT) and with automatic test equipment (ATE) and a reliability testing line
Additionally, Kaynes SemiCon would invest Rs 83.28 crore in a silicon photonics research and development centre in Mysuru for co-packaged optics. Ten lines for OSAT and one line each for MEMS, sensors, and power modules will be available at the Mysuru site.
Centre to pay out Rs 400 cr to 20 firms under PLI scheme for telecom gear
The Department of Telecommunications (DoT) is anticipated to award incentives of Rs 400 crore to 20 companies during the current fiscal year, according to a report published on Thursday by The Economic Times (ET). Companies like Nokia, Jabil, HFCL, and VVDN are on the list of those that stand to gain.
As to the report, the 20 companies that were part of the production-linked incentive (PLI) plan for producing telecom goods had achieved their targets. Incentives will be given to several companies for the first time.
Thirty-one companies were given approval to participate in the manufacturing of networking and telecom products under the plan, which was announced in February 2021. For various product types and categories, it provides incentives ranging from 4 to 7%. For micro, small, and medium-sized businesses, the incentive is one percent higher (MSMEs).