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Auto, Auto Components and Electric Vehicles
Karnataka, the auto innovation hub of India, is home to leading global companies such as Mercedes (Daimler), Bosch, Toyota, Volvo, Scania etc. It accounts for 8.5% of the total national automobile output and houses India’s first Public Electric Vehicle Charging Station by BESCOM. The State is also home to Reva Mahindra, the first indigenously built electric car in the country. Karnataka has the highest number of public EV charging stations (5,765) of which 4,462 are in Bengaluru Urban District alone.
4th
producing state
7+
Auto OEMs and 50+ Auto Component Manufacturers
45+
the state
5
across the state
Sector Incentives and Policy
Industrial Policy
| Particulars | Incentives |
|---|---|
| Investment promotion subsidy | Up to 2.25% of annual turnover for 6-10 years Up to 40-60% Value of Fixed Assets |
| Land Conversion Fee | 100% reimbursement |
| Stamp Duty | 100% reimbursement |
| Concessional Registration Charges | 0.1% |
| Effluent Treatment Plants | 50% subsidy up to Rs. 250 L |
| Anchor Industries1 | INR 7-10 Cr subsidy |
Subsidies are applicable only for the first industry in sub-administrative zones; to encourage investments in taluks where there are no industries with investments above INR 100 Cr and direct employment of 75 persons
EV Policy
| Particulars | Incentives |
|---|---|
| Capital Subsidy | 15%1 on Fixed Assets incl. land + 25%2 for equipment for charging/battery swapping/switching stations up to Rs. 10 L per station |
| Production Linked Subsidy | 1% of annual turnover for 5 years |
| Stamp Duty | 100% reimbursement |
| Concessional Registration Charges | 0.1% |
| Effluent Treatment Plants | 50% subsidy up to Rs. 2 Cr. |
| Skill Development Subsidy | 50% stipend for in-plant training up to Rs.10k per month |
| Demand Side Incentives | Zero Road Tax and Zero Registration charges for EVs |
- Incentive payout to be spread out over 5 years and Cap of 50 acres of land
- Limit exists on no. of stations that can avail subsidy
New initiatives & opportunities
North cluster
India’s first private Aerospace SEZ with ~250 Acres area situated in Belagavi for A&D manufacturing and assembly
Central cluster
Aerospace research and innovation Centre collocated with IISc at Chitradurga. Flying training school at Davangere
South cluster
Hi-tech Aerospace and Defence park with ~1000 Acre area situated in Devanahalli, Bangalore for access to vast A&D ecosystem in Bangalore
MRO
World class Maintenance, Repair and Operations (MRO) facility planned in Bangalore, Mysuru to leverage recently announced tax rationalization
Initiatives and Growth Drivers
Dedicated EV Clusters
5 Auto-specific clusters across the state in Belagavi, Dharwad, Kolar, Bengaluru, Mysore
Research center
Establishment of a research centre along with testing facilities and an incubator centre for electric vehicles. Major players with E-R&D presence in Karnataka: Continental, Ather, Ola Electric
Electric Vehicle
End-to-end value chain of auto and auto components manufacturing exists in the state.
New-age Tech
Karnataka's focus on modernization and new-age technologies, such as additive manufacturing and advanced battery cell manufacturing, positions it at the forefront of the automobile and electric vehicle industries.
Remarkable Partnerships
The state also promotes partnerships with educational institutions, such as the collaboration with Tata Technologies Ltd to transform 150 ITIs into technology hubs, training thousands annually in various aspects of EV technology.
Sector Champions
Soumitra Battacharya
Bosch Group in India
Managing Director
Bosch Limited, Bosch India
Bosch India is a leading supplier of technology and services in the areas of Mobility Solutions, Industrial Technology, Consumer Goods, Energy, and Building Technology. Additionally, Bosch in India has the largest development center outside Germany, for end-to-end engineering and technology solutions. In India, Bosch set up its manufacturing operations in 1951, which has grown over the years to include 16 manufacturing sites, and seven development and application centers. The Bosch Group in India employs over 31,500 associates and has close to 15,650 research and development associates.
Kamal Bali
President & Managing Director
Volvo Group India
In its 20 years of presence in India, Volvo Group has showcased its ability to establish new segments and introduce novel concepts single-handedly. Today, Volvo is defining the future of transportation in India with their presence across segments- from buses, trucks, construction equipment to engines for the marine and industrial sectors too.
Sector Contact
Assitant Director
Email: [email protected]
Phone: 9778506292
