Opportunities and Challenges for Automakers – BijuliDai.com

India’s new electric vehicle (EV) policy, known as the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI), aims to attract global automakers by reducing import duties on premium EVs. Under this scheme, companies can import a limited number of fully built EVs at a reduced duty rate of 15%, down from the previous 70–100%. To qualify, automakers must invest at least ₹4,150 crore (approximately $500 million) in local manufacturing within three years and meet specific domestic value addition (DVA) targets—25% by the third year and 50% by the fifth year.

The policy allows for the import of up to 8,000 EVs annually at the reduced duty rate, with a cap of 40,000 units over five years. This initiative is designed to boost domestic EV production, reduce reliance on imports, and position India as a significant player in the global EV market. While companies like Mercedes-Benz and Volkswagen have shown interest in participating, Tesla has reportedly expressed disinterest in establishing manufacturing operations in India.