India has officially launched the online application portal for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), marking a major milestone in the country's push toward becoming a global hub for electric vehicle (EV) manufacturing. The portal, which went live on June 24, 2025, will remain open until October 21, 2025, giving global EV giants the opportunity to invest in and shape India’s fast-evolving automotive ecosystem.

The SPMEPCI scheme, originally notified on March 15, 2024, and further clarified with detailed guidelines on June 2, 2025, is designed to align with the Government of India’s long-term missions such as Make in India, Aatmanirbhar Bharat, and the commitment to achieve Net Zero emissions by 2070. By offering significant policy incentives, the scheme aims to attract major global players in the electric car segment while also accelerating the development of a robust domestic EV manufacturing ecosystem.

SPMEPCI: An Ambitious Push for India’s EV Future

Union Minister of Steel and Heavy Industries, Mr. Haradanahalli Devegowda Kumaraswamy, in his address, described the launch as a “defining moment for India’s future-ready mobility” under the leadership of Prime Minister Mr. Narendra Modi. The scheme, he noted, represents a fine balance between strategic import facilitation and local industrial growth, with an ultimate aim to transform India into a self-reliant and globally competitive EV powerhouse.

Under SPMEPCI, approved applicants will be allowed to import Completely Built Units (CBUs) of electric four-wheelers (e-4W) that meet a minimum Cost, Insurance, and Freight (CIF) value of Rs. 30,12,170 (US$ 35,000). These CBUs can be imported at a reduced customs duty of 15% for a period of five years—a key incentive aimed at bringing premium EV technologies to India’s roads while the domestic industry scales up.

Investment and Domestic Value Commitments

However, the duty concession comes with significant investment and localization requirements. Prospective applicants must commit to a minimum investment of Rs. 4,150 crore (approximately US$ 482 million) in setting up local manufacturing infrastructure. Moreover, they must meet domestic value addition (DVA) milestones, which are crucial to ensuring that India doesn’t remain dependent on imports and instead builds indigenous capabilities in EV manufacturing and technology.

This dual objective of importing advanced EV technologies while fostering local industrial capability development is central to the scheme. It provides the flexibility for global automakers to test and introduce their EV offerings in the Indian market initially through imports, while laying the groundwork for phased localization of manufacturing, R&D, and component sourcing.

Boost to Make in India and Aatmanirbhar Bharat Missions

By offering these incentives, India EV scheme 2025 reinforces the government’s commitment to Make in India and Aatmanirbhar Bharat. It reflects the shift in policy thinking—from mere protectionism to a more strategic approach of facilitating advanced imports with binding commitments toward domestic industrialisation.

Through this policy tool, India seeks to emulate the global best practices seen in countries like China and the USA, where a combination of open markets and localization thresholds helped build powerful domestic EV supply chains. With India targeting to become a global EV manufacturing hub, SPMEPCI is expected to play a catalytic role in this transition.

Driving Climate Goals and Net Zero Targets

The scheme is also deeply aligned with India’s climate strategy, particularly its pledge to achieve Net Zero emissions by 2070. EVs are considered a cornerstone of this transition, especially when supported by a clean energy grid and a reliable battery recycling ecosystem. By encouraging the adoption and manufacturing of EVs, the scheme contributes significantly to reducing carbon emissions in the transportation sector, which currently accounts for a major share of urban pollution and oil imports.

The India EV policy for foreign carmakers is thus not just an industrial policy—it’s also an environmental and strategic policy, addressing climate, energy security, and economic competitiveness in a single framework.

Strategic Opportunity for Global Carmakers

The launch of the SPMEPCI portal is being watched closely by global automotive giants such as Tesla, BYD, Hyundai, Kia, and Volkswagen, many of whom have expressed strong interest in the Indian EV market. With urbanization on the rise, infrastructure improving, and a growing middle class, India presents one of the most promising electric mobility markets in the world.

The scheme offers these companies a regulated yet attractive entry point into the Indian market with clear investment guidelines and a transparent policy structure. It removes the uncertainty that has plagued previous attempts at foreign EV entry, replacing it with predictability, incentives, and time-bound expectations.

Balancing Imports with Indigenous Capability

A crucial part of the scheme’s success will be ensuring that import concessions do not undermine domestic players. That is why the government has built in stringent DVA milestones, which require global firms to gradually shift from CBU imports to local manufacturing. The reduction in EV import duty under strict conditions ensures that Indian companies and job markets benefit from the foreign investments, and the ecosystem expands to include component manufacturing, battery technologies, and design centers.

This creates a win-win situation—global players get access to a large consumer market, and India gains industrial depth and employment growth.

Job Creation and Industrial Growth

The SPMEPCI scheme is expected to generate significant direct and indirect employment, especially in automotive manufacturing clusters like Tamil Nadu, Maharashtra, Gujarat, and Karnataka. The focus on technology transfer and local partnerships will boost Indian MSMEs, engineering services, and skill development in next-gen automotive technologies.

By acting as a trigger for industrial expansion, the policy is set to boost India’s manufacturing share in GDP, support its ambition to become a trusted global manufacturing destination, and increase exports from the EV segment.

Conclusion: India’s EV Revolution Gets a Global Push

With the SPMEPCI portal now live, India has taken a bold step to welcome global EV manufacturers while ensuring domestic value capture and sustainable growth. This India electric car manufacturing policy sends a strong message to the world: India is ready to lead the global EV revolution, not just as a market but as a manufacturing and innovation base.

As this India EV scheme 2025 unfolds, its success will be measured not just in the number of foreign entrants, but in the depth of their integration with India's supply chains, the jobs they create, and the technology they transfer.

The India EV application portal, supported by a transparent policy framework, creates the right foundation for this transformation. With clear EV import duty guidelines, investment commitments, and Make in India alignment, India is positioning itself to seize the future of mobility.

This launch also underpins India’s broader ambition of achieving Net Zero by 2070, reducing oil dependency, and creating a self-reliant electric mobility ecosystem. By opening its doors strategically to global electric carmakers, India is not just following global trends—it is shaping them.

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