New Delhi: The Centre on 24 June launched the online application portal under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).
Eligible manufacturers can apply between 24 June (10:30 a.m.) and 21 October this year (6:00 p.m.) through the official website, according to the government notification.
The scheme, initially notified on 15 March 2024, aims to support India’s shift towards cleaner mobility solutions by providing regulatory and fiscal incentives to global players willing to invest in the domestic electric vehicle (EV) ecosystem. Detailed guidelines were issued on 2 June 2024.
According to the scheme framework, approved applicants will be allowed to import Completely Built Units (CBUs) of electric four-wheelers valued at a minimum CIF of $35,000 at a 15 per cent customs duty down from the standard 70 to 100 per cent for up to five years.
However, this benefit is conditional. Companies must commit a minimum investment of Rs 4,150 crore in domestic EV manufacturing infrastructure during that period. This structure reflects a hybrid approach, which is enabling limited imports while pushing for long-term domestic capacity building.
The government stated that the scheme is intended to support India’s climate commitments and establish the country as a competitive destination for high-tech automotive manufacturing. However, officials have not yet disclosed expected investment targets or projected job creation under the initiative.
By linking import benefits to domestic investment, the government aims to balance short-term market entry by foreign players with long-term local manufacturing growth.
This could impact how major global EV makers such as Tesla, VinFast and BYD approach the Indian market.
The scheme comes at a time when India is expanding its EV policy framework to address both climate goals and industrial development. It builds on earlier initiatives such as the FAME II scheme and the PLI Auto Component Scheme, which had limited participation from global EV makers.
Experts say the real test for SPMEPCI will be whether it successfully converts policy incentives into factory floors and jobs, rather than merely facilitating limited-scale imports.
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