Govt Of India Opens EV Manufacturing Scheme Portal For Global Carmakers

The Ministry of Heavy Industries has introduced a portal for the Scheme to Promote Manufacturing of Electric Passenger Cars in India, which commenced on March 15, 2024. This initiative seeks to boost local manufacturing investments in electric four-wheelers. The application window is open until October 21, 2025. Approved applicants will benefit from reduced customs duties for importing electric vehicles valued over USD 35,000. Investment guidelines, eligible expenditures, and a non-refundable application fee are outlined, along with a bank guarantee requirement for participating companies.

Updated Jun 26, 2025, 09:48 AM IST

The Ministry of Heavy Industries (MHI) has launched the official portal for applications under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). The scheme, first announced on March 15, 2024, is aimed at encouraging investment in local manufacturing of electric four-wheelers. The application window opened on June 24, 2025, at 10:30 a.m. and will remain open until 6:00 p.m. on October 21, 2025. Interested companies can access the portal.

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What are the local component sourcing requirements for companies participating in the SPMEPCI scheme?

Companies participating in the SPMEPCI scheme must achieve a local component sourcing of 25% within three years of setting up their manufacturing base, which must increase to 50% within five years. This requirement aligns with the standards set by the existing Production Linked Incentive (PLI) Auto Scheme, ensuring that investments contribute to the local economy and manufacturing capabilities.

How does the PM E-DRIVE scheme complement the goals of the SPMEPCI?

The PM E-DRIVE scheme, launched with an outlay of Rs 10,900 crore, aims to accelerate electric vehicle adoption across various categories, including two-wheelers, three-wheelers, and e-buses. This initiative complements the SPMEPCI by enhancing EV infrastructure and consumer incentives, thus creating a more conducive environment for global carmakers to invest in local manufacturing while boosting overall EV adoption in India.

What incentives does the FAME-II scheme offer to boost electric vehicle adoption?

The FAME-II scheme has incentivized the adoption of over 1.6 million electric vehicles by offering subsidies across various categories, including two-wheelers, three-wheelers, and buses. It has also sanctioned funding for the establishment of 7,432 public charging stations, which enhances the charging infrastructure necessary for wider EV adoption, making it an integral part of India's electric mobility strategy.

What role does the Production Linked Incentive (PLI) scheme play in the EV sector?

The Production Linked Incentive (PLI) scheme aims to enhance India's manufacturing capabilities for advanced automotive technologies, including electric vehicles. With a budget of Rs 25,938 crore, it incentivizes domestic manufacturing by promoting local value addition and attracting investments in the automotive supply chain, thereby supporting the broader goals of the SPMEPCI and other EV initiatives.

How is the Indian government supporting the development of charging infrastructure for electric vehicles?

The Indian government has allocated substantial funding for developing charging infrastructure, with Rs 800 crore sanctioned for establishing 7,432 public charging stations under the FAME-II scheme. Additionally, further investments are being made to upgrade existing stations, which is crucial for facilitating the widespread adoption of electric vehicles and ensuring consumer confidence in EV technology.

Customs Duty Benefits for Approved Applicants

Under the scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced customs duty of 15% for a period of 5 years from the Application Approval Date. However, the following conditions apply:

Only EVs with a minimum CIF value of USD 35,000 are eligible.
Imports will be capped at 8,000 units annually. Unused annual quotas can be carried over.
The total duty benefit is limited to the lower of Rs 6,484 crore or the actual investment made by the applicant.
The investment must be at least Rs 4,150 crore.
Imported EVs must eventually align with domestic value addition (DVA) goals, which will be certified by testing agencies approved by MHI.

Investment Guidelines and Eligible Expenditure

The scheme permits investment in both new and brownfield manufacturing facilities, with the following provisions:

Investment must be clearly demarcated from any existing manufacturing units in case of brownfield expansion.
Eligible expenditure includes plant and machinery, associated utilities, and engineering R&D.
Land cost will not be counted. However, buildings related to the main plant and utilities may be included up to 10% of the committed investment.
Spending on charging infrastructure will be counted up to 5% of the investment.

Application Process and Fees

A non-refundable fee of Rs 5,00,000 is applicable per application. While the current window will remain open for 120 days, the ministry retains the right to open new application cycles until March 15, 2026. Official notices will be made available on the MHI website.

Akshit Bansal, Founder & CEO, Statiq, said, "The launch of the application portal under the SPMEPCI scheme is a landmark moment for India’s electric mobility ecosystem. By welcoming global EV manufacturers to invest and manufacture in India, this initiative will significantly accelerate the growth of the domestic EV market and drive healthy competition. For consumers, this means access to a wider range of world-class electric vehicles, more advanced technology, and competitive pricing—all of which will make EV adoption more attractive and accessible than ever before."

Bank Guarantee Requirement

Companies looking to set up factories under this scheme needs to put up a Bank Guarantee from an Indian bank. This guarantee must cover either all the taxes they save or Rs 4,150 crore, whichever amount is bigger. It's a safeguard to make sure they stick to their promises, and it has to stay in place for as long as the plan runs.

Vivek Datta, MD & CEO, Globe Toyota, A JCBL Group Company, said, “While the push for full electrification is essential, India’s transition needs to reflect on-the-ground realities. Hybrid and plug-in hybrid vehicles offer a more immediate, scalable solution, balancing sustainability with the practicality our roads demand. With infrastructure developing, HEVs will be the determining factor in closing the gap between ambition and day-to-day mobility."

Govt Of India Opens EV Manufacturing Scheme Portal For Global Carmakers

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Customs Duty Benefits for Approved Applicants

Investment Guidelines and Eligible Expenditure

Application Process and Fees

Bank Guarantee Requirement

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