New Delhi [India], June 2 (ANI): The Government of India, under the leadership of Prime Minister Narendra Modi, has officially released detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI), marking a significant milestone in the country’s transition towards sustainable and indigenous electric mobility.
In a statement issued Monday, the Ministry of Heavy Industries (MHI) emphasized that the initiative aligns with India’s broader national goals of achieving net-zero emissions by 2070, accelerating sustainable transportation, promoting economic growth, and reducing environmental degradation. The scheme is intended to establish India as a leading global hub for automotive manufacturing and innovation—particularly in the electric vehicle (EV) sector.
The scheme notification was initially issued on March 15, 2024, by the Ministry of Heavy Industries. On the same day, the Department of Revenue under the Ministry of Finance also released a notification that enables reduced import duties in accordance with the scheme’s provisions. The government is expected to issue an official notice inviting applications soon, allowing prospective applicants to apply online.
Key Highlights of the Scheme:
- The scheme aims to attract significant investments from global EV manufacturers and promote India as a competitive manufacturing destination for electric vehicles.
- Approved applicants will be allowed to import Completely Built Units (CBUs) of electric four-wheelers (e-4Ws) with a minimum CIF value of USD 35,000 at a reduced customs duty of 15 percent for five years from the date of application approval.
- To qualify, applicants must commit to a minimum investment of ₹4,150 crore, in accordance with the scheme’s terms.
At a press conference, Union Minister for Heavy Industries HD Kumaraswamy described the policy as a forward-thinking initiative that would power India’s green mobility revolution.
“Under the visionary leadership of PM Modi, the Ministry of Heavy Industries has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles. This landmark initiative aligns with India’s national goals of achieving Net Zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact,” Kumaraswamy stated.
He emphasized the scheme’s strategic focus on attracting both global and domestic EV leaders. “With a minimum investment threshold of ₹4,150 crore, it provides an enabling policy environment for leading global and domestic players to establish long-term manufacturing footprints in the country. Through calibrated customs duty concessions and clearly defined Domestic Value Addition (DVA) milestones, the scheme strikes a balance between introducing cutting-edge EV technologies and nurturing indigenous capabilities,” he explained.
Minister Kumaraswamy further underscored that by mandating domestic value addition targets, the initiative would significantly advance India’s Make in India and Aatmanirbhar Bharat (self-reliant India) goals. He added that it will empower both international and domestic firms to become key contributors to India’s sustainable mobility vision.
As the global auto industry pivots toward cleaner technologies, India’s policy is designed to ensure that it plays a central role in shaping the future of electric mobility while creating jobs and enhancing the country’s manufacturing prowess. (ANI)
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