In a strategic push to position India as a global hub for electric vehicle (EV) manufacturing, the Government of India has announced the “Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)”. Launched by the Ministry of Heavy Industries (MHI), the scheme aims to attract major global EV players to invest in India’s growing green mobility sector. It aligns with the country’s Net Zero goal by 2070 and supports the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives.
The scheme offers a range of incentives and clearly defined guidelines to facilitate foreign and domestic investment, foster innovation, and build local EV manufacturing capacity.
Key Features of the Scheme:
- Customs Duty Benefit: Approved applicants can import electric four-wheelers (CBUs) with a minimum CIF value of USD 35,000 at a reduced 15% duty, valid for five years.
- Import Cap: Maximum of 8,000 CBUs per year at concessional duty, with a carry-forward facility for unused quotas.
- Minimum Investment Requirement: ₹4,150 crore (approx. USD 500 million) to be invested within three years of approval.
- Domestic Value Addition (DVA):
- Minimum 25% DVA in 3 years
- Minimum 50% DVA in 5 years
- To be certified by agencies approved by MHI using PLI Auto Scheme guidelines.
- Eligible Investments: Includes new plant and machinery, engineering R&D, and utilities. Land cost is excluded, though buildings and charging infrastructure may qualify with specific caps.
- Bank Guarantee: Applicants must furnish a bank guarantee equal to either the duty foregone or ₹4,150 crore, whichever is higher.
Applicants will have to pay a non-refundable fee of ₹5 lakh, and the application window will remain open for 120 days, extendable up to March 15, 2026. Companies must also demonstrate global automotive revenues of at least ₹10,000 crore and fixed asset investments of ₹3,000 crore as per their latest audited financials.
With this comprehensive scheme, the government aims to generate employment, bring cutting-edge EV technology to India, and catalyze a large-scale shift to sustainable transportation. It positions India firmly on the global EV manufacturing map while reinforcing its economic and environmental commitments.
