Guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India:
The Ministry of Heavy Industries (MHI) has issued comprehensive guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).
- 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.
Electric Passenger Vehicle Manufacturing Scheme:
- 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)
