Guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India
Kartavya Desk Staff
Source: FE
Context: The Ministry of Heavy Industries (MHI) has issued comprehensive guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).
Summary of Guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India:
• Companies can import up to 8,000 fully built electric cars per year at a reduced 15% customs duty (for five years), provided each vehicle’s CIF value is at least USD 35,000.
• To qualify, applicants must invest at least ₹4,150 crore within 3 years, set up manufacturing units, and start local production.
• The scheme mandates a Domestic Value Addition (DVA) of 25% within 3 years and 50% within 5 years.
• A bank guarantee matching the duty foregone or ₹4,150 crore, whichever is higher, must be submitted and will be refunded upon fulfilling the investment and DVA conditions.
• The duty concession cap is ₹6,484 crore or the actual investment—whichever is lower.
• Land cost is excluded, but charging infrastructure expenses are allowed up to 5% of investment.
• Only companies with a minimum global automotive revenue of ₹10,000 crore and fixed assets worth ₹3,000 crore are eligible.
About the Electric Passenger Vehicle Manufacturing Scheme:
• What It Is? A central government scheme to incentivize domestic and global EV manufacturers to establish EV car production capabilities in India by offering tax benefits and investment-linked incentives.
• A central government scheme to incentivize domestic and global EV manufacturers to establish EV car production capabilities in India by offering tax benefits and investment-linked incentives.
• Launched In: March 2024, officially notified in June 2025.
• Nodal Ministry: Ministry of Heavy Industries (MHI)
• Implementation Agency: Project Management Agency (PMA)
• Objectives:
• Attract foreign direct investment (FDI) in EVs. Promote India as a global EV manufacturing destination. Boost employment, clean technology adoption, and self-reliance in the EV sector. Reduce dependency on crude oil imports and promote climate goals (net zero by 2070).
• Attract foreign direct investment (FDI) in EVs.
• Promote India as a global EV manufacturing destination.
• Boost employment, clean technology adoption, and self-reliance in the EV sector.
• Reduce dependency on crude oil imports and promote climate goals (net zero by 2070).