News, 30 June 2025
An online platform for the new Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI) has been launched by the Indian Ministry of Heavy Industries. This program aims to establish India as a major hub for EV manufacturing, reduce reliance on imports, and attract domestic and international automakers.
The SPMPCI provides a reduced import duty of 15% for up to 8,000 electric passenger cars per year, a substantial drop from the earlier 70-100% rate. To be eligible, companies need to invest at least ₹4,150 crore domestically and set up production within three years of receiving scheme approval.
The scheme mandates a Domestic Value Addition (DVA) of 25% within three years, increasing to 50% within five years. Applicants must provide a bank guarantee, which will be the greater of the duty benefit or ₹4,150 crore. Eligibility is restricted to companies with a global automotive revenue of at least ₹10,000 crore and fixed asset investments of ₹3,000 crore, excluding those from countries sharing a land border with India.
The SPMPCI also encourages investment in supporting infrastructure, allowing up to 5% of committed investment for charging infrastructure and 10% for factory buildings, though land purchases are not included in eligible investments.
The portal is now open for applications from global EV leaders and Indian automakers, aligning with India’s goals for clean mobility, job creation, and the “Make in India” campaign.
