The Indian government has launched an online portal inviting applications under the newly introduced Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI). Open until October 21, 2025, the scheme offers global automakers the opportunity to import electric cars as Completely Built-Up Units (CBUs) at a reduced 15% customs duty—a significant cut from the standard 70–110% rate—for a period of five years.
To be eligible, imported EVs must have a minimum CIF value of US$35,000, with imports limited to 8,000 units annually. In exchange, participating companies must commit a minimum investment of ₹4,150 crore in local manufacturing facilities and begin commercial production within three years. They are also required to meet domestic value addition (DVA) benchmarks—25% DVA within three years, rising to 50% by the fifth year.
Participating companies must provide a bank guarantee to support their investment commitments—covering the customs duty foregone under the scheme. This guarantee must be unconditional and irrevocable, issued by a scheduled commercial bank in India, and will be invoked if the company fails to meet the minimum investment or domestic value addition (DVA) requirements.
The newly released guidelines mark a notable shift from the previous year’s framework. A major update is the inclusion of brownfield projects, provided they are physically separated from existing facilities. The scheme’s scope has also expanded to allow investments in research and development (R&D) and electric vehicle (EV) charging infrastructure.
While R&D expenditure has no cap within the overall investment commitment, spending on charging infrastructure will be counted only up to 5% of the total committed investment.
