Government Launches Portal for EV Carmakers to Apply Under New Manufacturing Scheme

In a major policy push to attract global and domestic electric vehicle (EV) manufacturers, the Indian government has officially launched an online portal for applications under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI). The scheme is designed to incentivize EV production by allowing Original Equipment Manufacturers (OEMs) to import high-end electric cars at reduced duty rates, provided they commit to substantial investments in local manufacturing.

Key Features of the SPMPCI Scheme

• Reduced Customs Duty: OEMs can import electric passenger vehicles valued at $35,000 or more at a concessional 15% customs duty, significantly lower than the current standard of 70%-100%.

• Limited Timeframe: The lower duty benefit will be available for five years from the date of approval.

• Minimum Investment Requirement: Companies must commit to a minimum investment of ₹4,150 crore (approximately $500 million) in setting up manufacturing facilities in India within three years.

• Localization Mandate: By the third year of operation, manufacturers must meet 50% localization of components and vehicle production.

Objective: Boost Local Manufacturing, Attract Global Players

The initiative is a part of India’s larger “Make in India” strategy, aimed at positioning the country as a global hub for electric vehicle production and export. The scheme is particularly expected to attract companies like Tesla, BYD, and VinFast, who have expressed interest in entering or expanding their presence in India.

It also complements India’s climate commitments under the National Electric Mobility Mission Plan (NEMMP) and supports the shift to zero-emission transport.

Application Process Now Open

The portal, launched by the Ministry of Heavy Industries, will serve as a single-window system for EV manufacturers to:

• Submit applications for concessional import approval

• Upload investment and localization roadmaps

• Track progress and compliance metrics

The government has also appointed a Project Management Agency (PMA) to evaluate proposals and ensure accountability and transparency throughout the implementation process.

Industry Response

Automakers have welcomed the move as a balanced policy that allows early market access through imports while ensuring a strong manufacturing footprint. Industry experts believe the scheme offers a level playing field to both Indian and foreign EV brands and will catalyze technology transfer, job creation, and supply chain development.

Conclusion

The launch of the SPMPCI portal marks a significant milestone in India’s electric mobility journey. By combining policy incentives with strict localization timelines, the government is creating a framework that both attracts foreign capital and strengthens domestic capabilities. The next five years will be critical in determining how India transitions from an EV importer to a global EV manufacturing leader.