Auto, Auto Components & Electric Vehicles
Karnataka is the auto innovation hub of India, being home to leading global companies such as Mercedes (Daimler), Bosch, Toyota, Volvo, Scania etc., It is also the 4th largest manufacturer of automobiles in India, accounting for 8.5% of the total national automobile output. The State is also home to Reva Mahindra, the first indigenously built electric car in the country, and 45+ EV innovation start-ups.
4th
Largest automobile producing state
7+
Auto OEMs and 50+ Auto Component Manufacturers
45+
Electric Vehicle start-ups in Bengaluru
5
Auto-specific clusters across the state
4th
Largest automobile producing state
7+
Auto OEMs and 50+ Auto Component Manufacturers
45+
Electric Vehicle start-ups in Bengaluru
5
Auto-specific clusters across the state
Table of contents
Incentives
Investment promotion subsidy of upto 10% of turnover for 5 years for Micro & Small Industries (upto INR 1 Cr.) and upto 2.5% of turnover for Medium enterprises for upto 6 years (upto 40% of value of fixed assets)
Upto 100% exemption on stamp duty
Low concessional registration charges of 0.1%
Reimbursement of cost of power paid at INR 1/unit for 3 years
50% subsidy on cost of ETP (Max INR 50 L)
5% interest subsidy on technology upgradation loan for upto 6 years
Upto 2.25% of turnover as investment promotion subsidy for 6-10 years upto 40-60% of fixed asset value
Upto 100% exemption on stamp duty
Low concessional registration charges of 0.1%
Upto 100% reimbursement on land conversion fee
50% subsidy on cost of CETP/ETP/STPs (upto INR 6 Cr.)
Investment subsidy for anchor industries of upto INR 10 Cr.
New initiatives & opportunities
Dedicated EV Cluster
EV Cluster being set up in Bengaluru Rural
Research center
Establishment of a research centre along with testing facilities and an incubator centre for electric vehicles.
New-age tech
Modernization and adoption of additive manufacturing technology.
Electric Vehicles
End-to-end value chain including advanced battery cell manufacturing being planned in the state
Sector Champion
Soumitra Battacharya
President, Bosch Group in India and 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.
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.
Growth drivers
Rising Investments
Creation of Free Trade and Warehousing Zone for the engineering sector further strengthening Karnataka's position within the sector.
Technology Led Solutions
Leading R&D institutions for thought leadership with Karnataka Automobile Research Centre.
Excellent Supporting Infrastructure
Presence of Five auto clusters at Dharwad, Belagavi, Shivamogga, Ramanagara and Bengaluru Rural.
Growing Penetration
Karnataka's automobile output has registered CAGR 36.5% between 2012 and 2017.
Sector Contact
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Auto and Electric Vehicle (2019) |
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KEVESP Policy |
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