TL;DR
India is revamping its electric car manufacturing policy to attract global OEMs by addressing previous scheme shortcomings and seeking industry feedback.
The Indian government is actively revising its electric car manufacturing scheme to make it more appealing to global Original Equipment Manufacturers (OEMs), including major players like Tesla. This initiative comes after the previous Scheme for Promotion of Manufacturing of Electric Passenger Cars (SPMEPC), which offered significant import duty benefits, lapsed without a single application. The government is now consulting with the industry to fine-tune the scheme and encourage substantial investments in local EV manufacturing.
The initial SPMEPC required a minimum investment of ₹4,150 crore ($500 million) and a bank guarantee of the same amount. Despite these incentives, OEMs hesitated to commit to setting up manufacturing facilities in India, with some, like Tesla, opting for the Completely Built Unit (CBU) import route instead. The renewed efforts highlight the government's determination to establish India as a robust hub for electric passenger car production by addressing industry feedback and making the policy more conducive for investment.
