Rapid Fire
Scheme to Promote Manufacturing of Electric Passenger Cars in India
- 07 Jun 2025
- 3 min read
The Center has issued detailed guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) to boost domestic electric vehicle (EV) production and establish India as a global EV manufacturing hub.
SPMEPCI
- About: It is an initiative launched by the Ministry of Heavy Industries (MHI) with the objective to boost domestic manufacturing of electric passenger cars (e-4W).
- The scheme aligns with India's broader goals of achieving net-zero emissions by 2070 and fostering sustainable mobility.
- Eligibility Criteria: It is limited to companies/groups with minimum automotive revenue of Rs 10,000 crore from automotive manufacturing, and with a minimum investment of Rs 3,000 crore in fixed assets.
- Key Features of SPMEPCI:
- Customs Duty Concession: Approved applicants can import Completely Built-in Units (CBUs) of electric passenger cars with a minimum cost of USD 35,000 at a reduced customs duty of 15%.
- This benefit will be available for five years from the approval date, with a cap on imports set at 8,000 units per year.
- Investment Commitment: Applicants must invest a minimum of Rs 4,150 crore within 3 years, establish manufacturing units, and commence production in that timeframe.
- Domestic Value Addition (DVA): Applicants must achieve at least 25% DVA within 3 years and 50% within 5 years, aligned with the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components.
- Customs Duty Concession: Approved applicants can import Completely Built-in Units (CBUs) of electric passenger cars with a minimum cost of USD 35,000 at a reduced customs duty of 15%.
India's Automotive Sector
- India is the 3rd largest automobile market in the world, with a current market size of Rs 12.5 lakh crore.
- India aims to become the world's largest automobile market by 2030, with a focus on electric and alternative fuel vehicles.
- This market is expected to grow to Rs 24.9 lakh crore by 2030, reflecting a 50% growth.
- The automobile sector contributes 7.1% to India’s GDP.
- Growth Drivers of India's Auto Sector: PLI Scheme for Automobile and Auto Components (PLI-Auto), PLI Scheme for Advanced Chemistry Cells (PLI-ACC), PM E-DRIVE Scheme.
| Read More: PM E-DRIVE Scheme |
