Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)

Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI): Recently, in a significant push to boost India’s electric vehicle (EV) goals, the Centre officially notified new guidelines under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).

• New Guidelines: Import up to 8,000 fully built electric cars annually at 15% customs duty (for five years) with a minimum Cost, Insurance, and Freight (CIF) value of USD 35,000 per vehicle.

o Minimum investment of ₹4,150 crore within 3 years required to qualify.

o Domestic Value Addition (DVA) targets: 25% in 3 years, 50% in 5 years.

o Duty concession capped at ₹6,484 crore or actual investment, whichever is lower.

o Eligible companies need ₹10K crore in global automotive revenue & ₹3K crore in fixed assets.

• About SPMEPCI: A central government initiative to encourage domestic and global EV manufacturers to set up production in India through tax benefits and investment-linked incentives.

o Launched in March 2024(officially notified in June 2025)

o Nodal Ministry: Mo Heavy Industries (MHI) & implemented by Project Management Agency (PMA).

o Objectives: Attract Foreign Direct Investment (FDI) in electric vehicles (EVs).

ü Establish India as a global EV manufacturing hub.

ü Generate employment, promote clean technology, and enhance self-reliance in the EV sector.

ü Reduce crude oil import dependence and support climate goals, including net zero by 2070.