Liberal imports to hurt local assembly of EVs

The draft of the National Electric Vehicle Policy (NEVP) 2025-30, which includes substantial tax breaks for imports, aims to transform the country’s automotive landscape from fossil fuels to green alternatives. However, assemblers feel the liberal imports of EVs would hurt local manufacturing. One of the salient features of the policy draft suggests that the NEV category passenger vehicles (cars, SUVs, vans) and light commercial vehicles imported in Completely Built-Up (CBU) condition will be subject to an incentivised 25 per cent customs duty till June 30, 2027, which will be increased to 50pc from July 1, 2027. The sales tax on NEV CBU units will be 10pc. The government has planned to unveil a new NEVP by the end of this month. These developments have frustrated EV assemblers, who have invested billions of rupees to align with the global shift towards electric vehicles.