Fiscal sops on cards for making Rare Earth magnets locally: HDK
In a video address at the 65th annual session of Automotive Component Manufacturers Association (ACMA), Kumaraswamy said his ministry is actively tackling vulnerabilities in critical raw materials.
"Rare earth magnets are central to electric vehicle (EV) motors and currently dominated by Chinese supply, we are preparing fiscal incentives to encourage domestic production," he said.
The minister also said a scheme aimed at powering India's participation in global value chains through targeted support for both capital expenditure and operational expenditure requirements of the industry is being readied. He said these will help bridge cost gaps, offer tariff relief on key equipment and ensure continuity of supply in the face of rising global restrictions. Urging the domestic players to also participate in efforts, the minister asked the industry to "significantly increase its investment in research and development, particularly in auto electronics, advanced driver assistance systems and new materials". Commenting on existing policies for the sector, Kumaraswamy said the production-linked incentive scheme for automobiles and auto components has attracted over ₹29,500 crore in investments and created close to 45,000 new jobs.
The PM E Drive, notified in 2024, is supporting electric two- and three-wheeler adoption. He said the scheme, originally launched in September 2024 with a ₹10,900 crore outlay through March 2026, has now been extended to March 31, 2028, focusing exclusively on electric buses, e-ambulances, e-trucks, EV public charging stations and upgrade of testing agencies.
energy.economictimes.indiatimes
