Auto component makers to gain from new 4-wheeler electric vehicle policy

Currently Indian ancillary makers are not all capable of supplying EV-specific components but some component makers are suppliers to global EV OEMs

The new four-wheeler (4W) electric vehicle (EV) policy may spur the entry of global majors.

The manufacturing policy cuts Customs duty to 15 per cent, given a minimum investment commitment.

It calls for a minimum investment of Rs 4,150 crore (about $500 million) for making electric four wheelers (e-4Ws), with manufacturing to commence within three years of approval.

In addition, auto makers must target domestic value addition of 25 per cent by the third year and 50 per cent localisation by the fifth year.

Under the new policy, e-4Ws may be imported with a minimum value of $35,000 (including freight