India launches a scheme to boost EV manufacturing, attracting global investments with reduced import duties and a minimum INR 4,150 crore commitment.
India’s government has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs).
This landmark initiative is aligned with India’s national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation.
This announcement was made by the Ministry of Heavy Industries on 2 JUN 2025.
The Ministry of Heavy Industries (MHI) has issued Notification regarding detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI / the Scheme)MHI had issued the Scheme notification on 15 March 2024.
The Department of Revenue, Ministry of Finance, had also issued the notification on 15 March 2024 for reduced import duties in line with the provisions of the Scheme. The Notice for inviting applications under the Scheme is proposed to be notified shortly, whereby the prospective applicants will be able to submit online applications.
The Schemeshall helps to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. The Scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of “Make in India”.
To encourage the global manufacturers to invest under the Scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced customs duty of 15% for a period of 5 years from the Application Approval Date.
Approved applicants would be required to make minimum investment of INR 4,150 crore in line with the provisions of the scheme.
During the press conference, Union Minister Shri H.D. Kumaraswamy said:
“Under the visionary leadership of Hon’ble Prime Minister Shri Narendra 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. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation.
The scheme is strategically crafted to position India as a global hub for electric vehicle manufacturing. With a minimum investment threshold of INR 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.
By mandating domestic value addition targets the scheme will further boost the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives, while empowering both global and domestic companies to become active partners in India’s green mobility revolution.”
Custom Duty benefits:
- The approved Applicants will be allowed to import CBUs of e-4W manufactured by global Group Companies with a minimum CIF value of USD 35,000 at reduced customs duty of 15%for a period of 5 years from the Application Approval Date.
- The maximum number of e-4W allowed to be imported at the aforesaid reduced duty rate shall be capped at 8,000 nos. per year.
- The carryover of unutilized annual import limits would be permitted.
The maximum number of EVs to be imported under this Scheme shall be such that the total duty foregone will be limited to the lower of the following:
The maximum duty foregone per Applicant (limited to INR 6,484 crore), or
Committed investment of the Applicant (minimum INR 4150 crore).
