Government Notifies Guidelines for Scheme to Promote Manufacturing of Electric Passenger Cars in India
June 2, 2025 | New Delhi
The Government of India, under the leadership of Prime Minister Shri Narendra Modi, has announced detailed guidelines for a landmark scheme aimed at promoting the manufacturing of electric passenger vehicles in the country. The initiative, titled the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI), seeks to attract fresh global investments, support domestic production, and position India as a global EV manufacturing hub.
The Ministry of Heavy Industries (MHI) officially notified the scheme guidelines, first introduced on March 15, 2024. In tandem, the Ministry of Finance’s Department of Revenue has also announced reduced import duties aligned with the scheme’s provisions.
Key Highlights of the Scheme:
- Custom Duty Benefits: Approved applicants can import completely built-up (CBU) electric four-wheelers (e-4W) with a minimum CIF value of USD 35,000 at a reduced customs duty rate of 15% for five years. Imports are capped at 8,000 units annually, with unutilized quotas allowed to carry over.
- Investment Mandate: A minimum investment of ₹4,150 crore (~USD 500 million) is required, with no upper limit. Applicants must establish a manufacturing facility and commence production within three years of approval.
- Domestic Value Addition (DVA): The scheme mandates at least 25% DVA within three years and 50% within five years, promoting indigenous capabilities and supporting the “Make in India” and “Aatmanirbhar Bharat” initiatives.
- Eligibility Criteria: Applicants must demonstrate a minimum global automotive manufacturing revenue of ₹10,000 crore and a minimum global investment in fixed assets of ₹3,000 crore.
- Application Process: An online application window will open soon and remain available for at least 120 days. The scheme allows MHI to reopen the window periodically until March 15, 2026.
Union Minister Shri H.D. Kumaraswamy emphasized that the scheme is a strategic effort to foster green mobility, reduce environmental impact, and boost economic growth through cutting-edge EV technologies and strong domestic manufacturing infrastructure.
This initiative aligns with India’s broader commitment to achieving net-zero carbon emissions by 2070 and marks a significant milestone in transforming the country’s automotive sector.
If you are an EV manufacturer (or) EV Dealer (or) EV Supporter who wants to share news related to Electric vehicles on our website, please send an email to crm@electricvehicles.in
For the latest Electric vehicles news,
follow electricvehicles.in on
and our YouTube Channels
