An online application portal for a new electric vehicle (EV) production programme with lower import taxes has been made available by the Indian government. The deadline for applications is October 21, 2025.
Promoting Domestic Production
Up to 8,000 fully built-up (CBU) electric cars with a minimum Cost, Insurance and Freight (CIF) value of $35,000 may be imported by international automakers each year under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI), subject to a five-year, 15% customs tariff. This is a decrease from 70–110 per cent.
Companies must start production within three years and invest at least ₹4,150 crore in Indian manufacturing facilities in order to be eligible. Within three years, they must increase domestic value addition by 25%, and by the fifth year, it must have increased to 50%.
Financial Guarantees
Businesses need to reimburse the lost customs duty on their investment with an irrevocable bank guarantee from a scheduled Indian commercial bank. If businesses fall short of investment or value addition goals, this will be enforced.
According to recent standards, brownfield projects are now eligible as long as they are clearly separated from existing facilities. Research and development (R&D) can be funded indefinitely, and infrastructure for EV charging can be supported with up to 5% of investments.
Developing India’s EV Industry
The programme seeks to entice international businesses to establish production in India by reducing import charges. Economic benefits like job creation and knowledge transfer are ensured by the focus on domestic value addition.
The initiative capitalises on the worldwide trend towards sustainable mobility by positioning India as a possible centre for EV manufacture. It boosts local industry by encouraging automakers to join India’s supply chain.
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