Government notifies guidelines for Scheme to Promote Manufacturing of Electric Passenger Cars in India
The Ministry of Heavy Industries notified detailed guidelines on 2 June 2025 for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).
Summary
The Ministry of Heavy Industries notified detailed guidelines on 2 June 2025 for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), which aims to attract investment from global EV manufacturers. Approved applicants can import completely built-up electric four-wheelers with a minimum CIF value of USD 35,000 at a reduced customs duty of 15% for five years, capped at 8,000 units a year. They must commit a minimum investment of ₹4,150 crore (about USD 500 million) within three years and begin manufacturing e-4Ws within three years, while meeting domestic value addition milestones. The total duty foregone per applicant is limited to the lower of ₹6,484 crore or the investment made. The scheme itself was notified on 15 March 2024; Union Minister H.D. Kumaraswamy linked it to India's net zero by 2070 goal.
Key facts
- Notified
- 2 Jun 2025, Ministry of Heavy Industries (guidelines)
- Scheme
- SPMEPCI; notified 15 Mar 2024
- Duty concession
- 15% customs duty on e-4W CBUs (min CIF USD 35,000) for 5 years
- Import cap
- 8,000 units a year
- Minimum investment
- ₹4,150 crore (~USD 500 mn) in 3 years
- Duty foregone cap
- Lower of ₹6,484 crore or investment
- Operations
- Within 3 years
Practice MCQs 4 questions
Under the Scheme to Promote Manufacturing of Electric Passenger Cars in India, at what reduced customs duty can approved applicants import e-4W CBUs?
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Correct answer: D — 15%
Approved applicants can import CBUs of e-4W with a minimum CIF value of USD 35,000 at a reduced customs duty of 15% for five years from the Application Approval Date.
What is the minimum investment commitment required from approved applicants under SPMEPCI?
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Correct answer: A — ₹4,150 crore
Approved applicants must make a minimum investment of ₹4,150 crore (about USD 500 million) within a three-year window.
What is the annual cap on the number of e-4Ws that an approved applicant can import at the reduced duty under SPMEPCI?
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Correct answer: C — 8,000
The maximum number of e-4W allowed to be imported at the reduced duty rate is capped at 8,000 per year, with carryover of unutilised limits permitted.
Consider the following statements about the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI): 1. Only e-4W CBUs with a minimum CIF value of USD 35,000 qualify for the reduced customs duty. 2. Approved applicants must commence manufacturing operations within five years of approval. Which of the above is/are correct?
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Correct answer: A — 1 only
Statement 1 is correct: the reduced duty applies to e-4W CBUs with a minimum CIF value of USD 35,000. Statement 2 is incorrect: applicants must set up the facility and commence manufacturing of e-4W within three years.