New EV policy intensifies competition in the electric PV segment, attracting global OEMs like Tesla. Domestic auto component players stand to benefit from the policy's focus on localization and advanced technology investments.
Union Minister Ashwini Vaishnaw announced that the first chip from Gujarat's Sanand plant will be produced by December 2024, while the larger facility in Dholera will commence chip production by December 2026.
Vedanta Chairman and industrialist Anil Agarwal said that EVs use up to six times more minerals compared to conventional vehicles and if played out correctly, the need for these resources could drive up jobs in the local mining sector.
The Union Cabinet on February 29 approved the establishment of three semiconductor plants with a combined investment of ₹1.26 lakh crore. To encourage domestic manufacturing of semiconductors, the government is also offering incentives amounting to ₹76,000 crore.