New Government Scheme Woos Global EV Makers with Import Perks, Manufacturing Mandates, and Just a Hint of Bureaucratic Drama
New Delhi:
In a move that’s equal parts climate crusade and economic chess, the Government of India has officially notified guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India — or as bureaucrats affectionately call it, SPMEPCI (pronounced: “spem-peck-ee”, if you’re brave enough).
Spearheaded by the Ministry of Heavy Industries (MHI) and blessed by the visionary aura of Hon’ble Prime Minister Narendra Modi, the scheme is aimed at turning India into a global powerhouse of electric mobility — one EV at a time.
The scheme isn’t just about saving the planet. It’s also about luring the world’s top EV manufacturers into setting up shop in India, ideally with bulging briefcases of investment worth at least ₹4,150 crore. In return? A juicy customs duty cut (from 100% to just 15%) on importing luxury e-cars priced above $35,000 — but only for five years and capped at 8,000 units annually. Because, hey, even red carpets have limits.
Union Minister H.D. Kumaraswamy, while unveiling the scheme, declared:
“This is not just about cars. This is about carbon, capability, and curry-powered innovation. Okay, maybe not curry, but definitely capability.”
What’s the Deal?
- Approved applicants can import luxury EVs at 15% duty, if priced above USD 35,000.
- A maximum of 8,000 such vehicles can be brought in per year. Unused quotas can be carried over like vacation leaves nobody approves.
- Duty concessions capped at the lower of ₹6,484 crore or the total investment made.
- Applicants must submit a bank guarantee matching either the duty benefit or ₹4,150 crore — whichever makes their CFO sweat more.
But wait, there’s more. The fine print (because this is still India):
- Land costs don’t count. Buildings do, but only up to 10%.
- Charging infrastructure investment is allowed — but capped at 5%.
- R&D counts, because science.
- Brownfield projects are allowed — as long as they clearly wear different clothes from their existing factory cousins.
Application Window Drama
A 120-day window will soon open for hopeful applicants to file their bids — each accompanied by a ₹5 lakh non-refundable fee. “Non-refundable” being the most reliable thing in the entire process.
And if you’re a global automaker wondering when to apply — don’t worry, the window can reopen anytime till March 15, 2026. It’s like a pop-up restaurant, but for billion-dollar carmakers.
India is officially open for electric business — offering global EV giants the chance to dance on Indian roads with fewer import taxes, provided they bring enough money, manufacturing ambition, and the patience to navigate a few government forms (and at least one SOP).
So whether you’re Tesla, BYD, or some stealth-mode Scandinavian startup — charge your batteries and ready your bank guarantees. The Indian EV dream has been green-lit.
Investment:
| Minimum Investment Commitment in India during a 3 year window | Rs. 4,150 crore (equivalent to approx. USD 500 Mn) |
| Commencement of Operations | TheApplicant is required to setup manufacturing facility and commence operations for manufacturing of Eligible product i.e. e-4W within a period of 3 years from Application Approval Date |
| Maximum Investment Commitment in India during a 3 year window | No Limit |
| Domestic Value Addition (DVA) criteria during manufacturing | Minimum DVA of 25% to be achieved within 3 years and minimum DVA of 50% to beachieved within 5 years from date of issuance ofapproval letter by MHI/ PMA |
Eligibility Criteria:
- The Applicant will need to meet the following criteria to qualify and receive benefits under the Scheme:
| Particulars | Eligibility Criteria |
| Global Group* Revenue (from automotive manufacturing), based on the latest audited annual financial statements at the time of application | Minimum Rs. 10,000 crore |
| Global Investment of Company or its Group* Company(ies) in fixed assets (gross block), based on the latest audited annual financial statements at the time of application | Minimum Rs. 3,000 crore |
*Group Company(ies) shall mean two or more enterprises which, directly or indirectly, are ina position to exercise twenty-six percent or more of voting rights in the other enterprise.
