02 JUN 2025, New Delhi
The Government of India has officially released detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI),” aimed at accelerating the country’s position as a global hub for electric vehicle (EV) manufacturing.
Under the leadership of Prime Minister Narendra Modi, the scheme is aligned with India’s goal to achieve net zero emissions by 2070 and promote sustainable mobility.
The initiative will attract leading global EV manufacturers to invest in domestic production facilities by offering key incentives, including a reduced customs duty of 15% for five years on the import of high-end electric cars (with a minimum CIF value of USD 35,000).
This import limit will be capped at 8,000 vehicles per year, with unused quotas carried forward, and the total customs duty benefit for any applicant will be restricted to either Rs. 6,484 crore or their actual investment, whichever is lower.
To avail of these benefits, companies must commit a minimum investment of Rs. 4,150 crore within a three-year period and achieve 25% domestic value addition (DVA) within three years and 50% DVA within five years.
Eligible applicants must have a minimum global revenue of Rs. 10,000 crore from automotive manufacturing and at least Rs. 3,000 crore in fixed asset investments, based on their latest audited financials.
The scheme mandates that all applicants back their commitments with a bank guarantee of Rs. 4,150 crore or the total duty benefit expected, whichever is higher. The application window for interested companies will be open for 120 days and can be reopened until March 15, 2026.
With this move, the government aims to generate employment, encourage R&D, boost local manufacturing, and put India firmly on the world map as a leading destination for EV production under the Make in India mission.
Source: Press Information Bureau (PIB)
