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India has officially notified the new EV car manufacturing scheme, laying out the fine print to attract global players.
The deets: the policy, now formally titled the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), was first cleared in March and targets high-end EV makers like Tesla, Mercedes-Benz, and Hyundai.
To qualify, companies must invest at least ₹4,150 crore in India. In return, they can import up to 8,000 fully-built EVs per year priced above $35,000 at a slashed 15% customs duty for 5 years.
Companies must also submit a bank guarantee equal to either the minimum investment or the total duty saved, whichever is higher as a safeguard.
The how: automakers will need to localise at least 25% components in 3 years, and 50% in 5 years, benchmarked against the PLI Auto scheme. The benefits under the scheme are capped at ₹6,484 crore, or the committed investment, whichever is lower.
Who can apply: only serious contenders. Eligible companies must show global revenue of at least ₹10,000 crore and fixed assets worth ₹3,000 crore. Land costs are excluded, and EV charging infra can’t exceed 5% of the capex.
Zoom out: Tesla’s still quiet, but Mercedes, Kia, VW, and others have already expressed interest. India isn’t just opening its doors for EV sales—it wants global giants to make in India. And with this, it’s raising the bar for who gets to play.
