new delhi/mumbai, May 7 -- In March 2024, foreign carmakers took note when India proposed low-duty imports for a few thousand electric cars, if they promised to invest a specific amount here. But with the Centre yet to finalize the scheme's guidelines, manufacturers have shifted their sights to expected duty reductions in free trade agreements (FTAs) under discussion, three industry executives said. The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), dubbed the 'Tesla Policy', was seen as part of New Delhi's attempt to attract the US carmaker after its CEO Elon Musk publicly criticized the country's high import duties on automobiles. Under the scheme, approved car makers were to be allowed to import up to 8,000 electric vehicles (EVs) a year at 15% duty against the usual 70-110% tariff on the import of fully made cars, which are called completely built units (CBUs). The concession was contingent upon minimum investments worth Rs.4,150 crore. Tesla, the Volkswagen Group, Hyundai Motor India Ltd, Toyota Kirloskar and Vietnam's Vinfast were among entities who were previously reported to be interested in the scheme. "There hasn't been much movement on the manufacturing scheme by the government," one of the executives cited above, who works with a foreign carmaker interested in the EV scheme, said on condition of anonymity. "The talks of India with the US on auto imports give us hope that there is going to be a broader reduction of tariffs on CBUs." In a statement toMinton 6 May, Hyundai India said the government is discussing a programme with the industry to roll out a programme for widespread EV manufacturing and adoption. "HMIL has been making in India for the past nearly three decades and welcomes any step to promote local manufacturing that offers innovative and safe mobility solutions to people and job creation," a spokesperson said. "We await the rollout of the final policy and guidelines." Emailed queries to Volkswagen, Tesla, Toyota, Vinfast and the heavy industries ministry went unanswered. Tesla has been vocal about its concerns on the tariffs on EVs. "The same car which we're sending is 100% more expensive than what it is. So, that creates a lot of anxiety. People feel OK, they're paying too much for the car...That's why we've been very careful trying to figure out when is the right time (to enter India)," Tesla's chief financial officer Vaibhav Taneja said during an earnings call in April. While Tesla's entry is still anticipated, the company has not pledged any investment in making a plant in the country. Last month, Musk spoke with Prime Minister Narendra Modi over "potential collaboration in the areas of technology and innovation". "India has to relax its tariff norms to allow more foreign cars to come in as the electric car market has not grown at a pace which was anticipated," the executive cited above said. In 2024, India's electric car market grew by 20% to reach nearly 100,000 units as per Vahan portal data. However, these cars still account for just 2.5% of the overall numbers....