The Heavy Industries Ministry on June 24 launched the online portal inviting applications for the scheme to encourage manufacturing of electric vehicles in India, in an effort to boost make in India.
Minister HD Kumaraswamy posted on social media platform X, "Proud to announce the launch of the online application portal for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)." The scheme will boost domestic manufacturing, create jobs, and is seen as a key step in the ambition to become a global EV hub, Kumaraswamy said.
Applications for the scheme, which was notified on June 2, can be sent by interested participants on the online portal spmepci.heavyindustries.gov.in starting June 24 till October 21, 2025.
The scheme aims to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. "This scheme not only supports our national commitment to achieving Net Zero by 2070, but also reinforces our resolve to build a sustainable, innovation-driven economy. It strengthens the pillars of ‘Make in India’ and ‘Aatmanirbhar Bharat’, and positions India as a trusted global hub for next-generation automotive manufacturing and technology leadership," said HD Kumaraswamy.
The policy offers to duty cuts of up to 15% on up to 8,000 imported electric car a year, priced from Rs 30 lakh ($35,000), if the manufacturer invests at least Rs 4,150 crore to set up a local plant within three years of India foray.
"With a minimum investment threshold of Rs 4,150 crore, it provides an enabling policy environment for leading global and domestic players to establish long-term manufacturing footprints in the country," Kumaraswamy had said on June 2.
To be eligible to apply, a group of companies will have to have a minimum annual revenue of Rs 10,000 crore from automotive manufacturing, while the annual revenue in fixed assets will have to be at least Rs 3,000 crore.
Tesla has already indicated that it is not keen on manufacturing in India, and has instead likely chosen to sell cars made at its German factory through dealerships and company-owned showrooms. China's EV major BYD too is unlikely to get India's go ahead to enter the market to make in India, and Vietnam's Vinfast Auto is already building a plant in India. Other global auto companies may show interest in setting up a plant to make EVs in India.
Global car makers such as Mercedes-Benz, Kia Motors, Hyundai Motor, Skoda and Volkswagen are likely among the foreign carmakers interested to manufacture in India. Shares of Tata Motors and Mahindra & Mahindra are lower in trade on June 24 after the announcement, in-line with the weakness in broader market.
In the Economic Survey 2025, Chief Economic Adviser V Anantha Nageswaran had said that indigenising the electric vehicles and sourcing raw materials for electric mobility is an urgent task for India. "...given India’s vast size and limited land availability, public transportation is a more efficient alternative for viable energy transition. Therefore, national-level policies and local nudges must promote and facilitate its use, going beyond the focus on tail-pipe emissions of private transportation choices," the Survey had said.
The Global Trade Research Initiative (GTRI), a trade research group, had in a note earlier this year said that India needs to watch out for its high reliance on China for critical minerals like lithium and cobalt, needed for making EV batteries. "India should prioritise research and development in next-generation battery technologies that minimise dependence on scarce minerals, positioning itself as a global leader in EV innovation," GTRI had said.
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