In a major push to accelerate domestic production of electric passenger cars, the Government of India has launched an online portal under its newly announced Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI). The initiative, rolled out by the Ministry of Heavy Industries, aims to position India as a global hub for EV manufacturing while significantly reducing dependency on imports.
The new scheme is tailored to attract both Indian and international automakers by offering reduced import duties and a clear roadmap for local production. Under SPMPCI, eligible companies can import up to 8,000 electric passenger cars annually at a concessional 15% import duty, far lower than the existing 70–100% slab. However, this benefit is conditional on a minimum local investment of ₹4,150 crore and setting up production within three years of scheme approval.
To ensure a robust domestic supply chain, the scheme mandates a Domestic Value Addition (DVA) of 25% within three years, rising to 50% within five years. A bank guarantee equal to either the duty benefit or ₹4,150 crore—whichever is higher—is also required as a safeguard.
The eligibility criteria reflect the government’s intent to bring in serious, financially stable players. Only companies with a global automotive revenue of at least ₹10,000 crore and fixed asset investments of ₹3,000 crore can apply. Notably, automakers from land-border sharing countries like China and Pakistan remain ineligible under existing restrictions.
SPMPCI also encourages investment in supporting infrastructure. Up to 5% of the committed investment can be allocated toward charging infrastructure, and 10% toward factory buildings. However, land purchases will not count toward the eligible investment total.
The online portal is now open for registrations, inviting applications from global EV leaders and Indian auto giants ready to shape the future of electric passenger cars in India. This strategic move aligns with India’s broader vision to scale up clean mobility, create jobs, and strengthen its Make in India campaign.
Covered By: Mobility India / EV
If you have an interesting Article / Report/case study to share, please get in touch with us at editors@roymediative.com roy@roymediative.com, 9811346846/9625243429.
