India targets to be among the top three globally in terms of engineering, manufacturing and export of vehicles & auto components

Offers incentives on electric and hybrid vehicles of up to USD 430 for bikes and USD 2050 for cars

The objectives of the National Auto Policy will be met through policy interventions across five identified focus areas:

1. Innovation, Research and Development

2. Vehicle Manufacturing

3. Auto Component Manufacturing in India

4. Green Mobility

5. Eco-system development

The National Mission for Electric Mobility 2020 was launched on 9 January, 2013 for faster adoption of electrical vehicles (including hybrid vehicles), and their manufacture in India. NEMMP seeks to encourage reliable, affordable and efficient production of electric vehicles that meet  performance and price expectations through government- industry collaboration , improved infrastructure, consumer awareness and technology.,  These initiatives would help India emerge as a leader in the electric vehicles  market globally by 2020, with total anticipated sales of around 6-7 mn units. It is estimated that there will be greater demand in India for low-cost EVs that are suited for safe short-distance urban commute (average 50-100 km/trip).

A total of USD 388.5 mn would be spent under NATRiP to create state-of-art research and testing infrastructure. The initiative would enable the industry to adopt and implement global performance standards and also to focus on providing low-cost manufacturing and product development solutions.