Tesla could set up a base in India through the PMP or FAME schemes.

According to a media report, the government of India may roll out a Phased Manufacturing Plan (PMP) type scheme in order to attract global EV makers like Tesla.

It is said that the PMP scheme would promote local manufacturing by offering incentives for building an ecosystem within the country. It would not only help meet demand but would also boost exports.

Reports suggest that the government is looking to set up a graded duty structure to boost domestic manufacturing while protecting the interests of domestic players like Tata Motors and Mahindra. This is also expected to help fast-track the transition towards EVs.

Tesla could set up a base in India through the PMP or FAME schemes. The company has already expressed its interest to bring its entire ecosystem, including vendors to India. It has been reported that the US-based EV maker is looking to set up a manufacturing unit with a capacity of around 5 lakh units per annum.

BMW is also said to be in talks with the government. The carmaker has proposed duty-free import of EVs for three years, after which it would invest in a manufacturing unit. BMW is willing to refund the import duty benefits extended by the government in case it cancels the investment plan.

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