The Government of India has launched a new policy to attract global and domestic investment in electric vehicle (EV) manufacturing, as part of its push toward achieving net-zero emissions by 2070. The Ministry of Heavy Industries (MHI) has released detailed guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).
Key Features
- Investment Requirement: Minimum ₹4,150 crore (approx. USD 500 million) investment within three years. No upper cap.
- Import Concessions: Approved companies can import up to 8,000 electric four-wheelers (CBUs) annually at a reduced 15% customs duty for five years, provided each vehicle costs at least USD 35,000. The total duty foregone is capped at ₹6,484 crore or actual investment made.
- Localization Targets: 25% Domestic Value Addition (DVA) in 3 years, and 50% in 5 years.
- Eligibility: Companies must have global revenues of at least ₹10,000 crore and fixed asset investments of ₹3,000 crore.
- Application Window: Open for 120 days, extendable till March 15, 2026. A ₹5 lakh fee and a bank guarantee (equal to duty foregone or ₹4,150 crore) are required.
Union Minister H.D. Kumaraswamy highlighted the scheme as a pivotal move to establish India as a global EV manufacturing hub. It aligns with the ‘Make in India’ and ‘Aatmanirbhar Bharat’ visions while ensuring technology transfer and job creation.
