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Instructions for Manufacturing Scheme of Electric Passenger Vehicles

The Ministry of Heavy Industries (MHI) has released comprehensive guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)”, with the goal of establishing India as a leading electric vehicle (EV) manufacturing center

Deeksha Upadhyay 04 June 2025 14:04

Instructions for Manufacturing Scheme of Electric Passenger Vehicles

SPMEPCI Program

Ministry in Charge: Ministry of Heavy Industries (MHI)

Release Date: Revealed in 2024

Goal:

  • Draw international investments to India's electric vehicle industry.
  • Encourage local production of electric vehicles.
  • Conform to India’s climate goals (net-zero by 2070).
  • Promote employment opportunities and boost industrial development.

Approved companies will be permitted to import a restricted quantity of fully assembled electric four-wheelers (e-4W) at a lower customs duty rate of 15 percent for five years.

These imports are required to have a minimum cost, insurance, and freight (CIF) value of USD 35,000 for each unit.

The concession is limited to 8,000 units annually, allowing for the transfer of unused quotas to future periods.

The overall duty waived will be capped at either Rs 6,484 crore or the actual investment by the applicant, whichever is less.

Importance of the Program

  • Promotes the transfer of advanced electric vehicle technology to India.
  • It bolsters the Make in India and Aatmanirbhar Bharat campaigns.
  • The program promotes the use of clean transportation and supports climate objectives.
  • It seeks to create high-level jobs in manufacturing and research and development.
  • It aims to establish India as a favored location for worldwide EV investments.
    • Electric Mobility Promotion Scheme 2024 (EMPS) with a budget of ₹ 778 Crore for a duration of 6 months (April 2024-September 2024) offering incentives to purchasers of e-2W and e-3W.

Additional efforts for Electric Vehicle transportation in India

  • Automotive and Auto Component Industry Production Linked Incentive Scheme (PLI-AAT) with a financial allocation of ₹ 25,938 Crore.
  • The program encourages different types of electric vehicles such as e-2W, e-3W, e-4W, e-buses, and e-trucks as well.
  • Production Linked Incentive Scheme for the manufacturing of Advanced Chemistry Cells (PLI-ACC) in the nation with a financial allocation of ₹18,100 Crore.
  • PM E-DRIVE Scheme: It represents PM Electric Drive Revolution in Innovative Vehicle Development (PM E-DRIVE).

The PM E-DRIVE will succeed the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II).

The initiative will emphasize the promotion of electric buses, trucks, and ambulances. This new scheme will not include electric cars for personal or shared transportation.

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