TL;DR
India's government launched a portal for its new EV manufacturing scheme, offering reduced import duties for global automakers to invest in local production and boost sustainable mobility.
The Indian government has introduced an online portal for companies to apply for a new Electric Vehicle (EV) manufacturing scheme, aiming to significantly boost local production and promote sustainable mobility. The application window for this initiative remains open until October 21, 2025. This scheme is designed to attract global carmakers to establish manufacturing facilities in India by offering substantial incentives, particularly reduced import duties.
Under the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India' (SPMPCI), international manufacturers are permitted to import up to 8,000 Completely Built-Up (CBU) electric cars annually, provided the vehicles have a minimum Cost, Insurance, and Freight (CIF) value of $35,000. These imports will be subject to a reduced customs duty of 15% for five years, a significant drop from the previous 70-110%. To qualify, firms must commit to investing at least ₹4,150 crore in Indian manufacturing facilities and commence production within three years.
The policy also mandates achieving 25% domestic value addition within three years, increasing to 50% by the fifth year, ensuring economic benefits through job creation and technology transfer. The government's emphasis on domestic value addition aims to integrate foreign carmakers into India's supply chain, positioning the country as a potential hub for global EV manufacturing. This strategic move is aligned with India's broader goals of achieving net-zero emissions by 2070 and encouraging eco-friendly transportation solutions.