India just took a massive leap toward becoming an EV powerhouse! The Ministry of Heavy Industries has opened applications for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), and the implications are huge for both manufacturers and consumers.
Table of Contents
What’s This Scheme All About?
Starting June 24, 2025, global EV manufacturers can now apply for what might be India’s most attractive manufacturing incentive yet. The application window runs until October 21, 2025, giving companies ample time to prepare comprehensive proposals.
Key Benefits & Requirements
| Incentives | Requirements |
|---|---|
| 15% reduced customs duty on CBU imports | Minimum investment of ₹4,150 crore |
| 5-year benefit period | CBU value minimum USD 35,000 |
| Import permission for electric four-wheelers | Meet domestic value addition milestones |
The scheme strikes a smart balance – while companies get attractive import benefits, they must commit to substantial local manufacturing and value addition over time.
Why This Matters for India’s EV Revolution
This initiative isn’t just about attracting foreign investment. It’s a strategic move to position India as a global EV manufacturing hub while building indigenous capabilities. The scheme promises to:
- Accelerate advanced EV technology transfer
- Create significant employment opportunities
- Strengthen domestic automotive supply chains
- Boost local innovation in the EV sector
Timeline and Next Steps
With applications opening today, eligible manufacturers have nearly four months to submit detailed proposals. The scheme, originally notified in March 2024, has been fine-tuned through recent notifications to ensure maximum impact.
For Indian consumers, this could mean access to more advanced electric vehicles at competitive prices, while the country builds its own manufacturing muscle.
Stay updated with the latest EV policy developments and manufacturing news on IndiaEVNews.com.
Sources: Ministry of Heavy Industries EV Policy Updates, KNN India
