The Indian government has released detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMPCI), aiming to boost electric vehicle (EV) production by attracting global manufacturers.
Key Features of the SPMPCI:
Investment Requirement: Automakers must invest a minimum of ₹4,150 crore (approximately $500 million) within three years of approval to establish EV manufacturing facilities in India.
Import Duty Concessions: Approved companies can import up to 8,000 fully-built EVs annually, valued at $35,000 or more, at a reduced customs duty rate of 15% for a period of five years. The total duty savings are capped at ₹6,484 crore or the actual investment made, whichever is lower.
Localization Targets: Participants are required to achieve 25% domestic value addition within three years and 50% within five years, promoting local supply chain development.
Bank Guarantee: Companies must provide a bank guarantee equal to the total duty savings or ₹4,150 crore, whichever is higher, to ensure compliance with investment and localization commitments.