Centre Notifies Guidelines to Boost Electric Car Manufacturing in India

Central Government notified detailed guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). The scheme is aimed at attracting global EV makers to invest in India by offering concessional customs duty and support for both greenfield and brownfield manufacturing investments. This move comes on the same day Union Minister H.D. Kumaraswamy disclosed that Tesla is currently not interested in manufacturing cars in India, but only in opening showrooms.

Why in News?

The Ministry of Heavy Industries formally notified the SPMEPCI guidelines to promote domestic EV manufacturing. The announcement comes amid Tesla’s disinterest in setting up manufacturing facilities in India, as stated by Union Minister H.D. Kumaraswamy.

Key Features of the Scheme

• Scheme Name: Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)
• Incentive: Reduced customs duty of 15% on CBUs (Completely Built Units) with CIF value of $35,000 or more.
• Validity: 5 years from the approval date of the application.
• Import Cap: Up to 8,000 EVs per year at concessional duty, with rollover allowed for unutilized quota.
• Application Notice: To be issued shortly.

Policy Changes from 2024

• Earlier limited to greenfield investments only.
• Now brownfield investments (expansion of existing plants) are also allowed, addressing objections by Indian manufacturers like Tata Motors and Maruti Suzuki.

Objectives

• Encourage global carmakers to establish manufacturing units in India.
• Boost domestic EV production, reduce carbon emissions, and promote clean mobility.
• Make India a global EV manufacturing hub.

Background Context

• The government announced its EV import policy in March 2024.
• This is part of India’s broader agenda to achieve net-zero emissions by 2070 and reduce dependency on fossil fuels.

Static/General Facts

• Union Minister for Heavy Industries: H.D. Kumaraswamy
• Tesla: A U.S.-based EV giant led by Elon Musk.
• CIF (Cost Insurance Freight): Total cost including transportation and insurance to bring goods to port.

Summary/Static	Details
Why in the news?	Centre Notifies Guidelines to Boost Electric Car Manufacturing in India
Scheme Name	SPMEPCI – Scheme to Promote Manufacturing of Electric Passenger Cars in India
Key Incentive	15% import duty on CBUs valued ≥ $35,000
Import Cap	8,000 units/year (carry forward allowed)
Investment Type Allowed	Both greenfield and brownfield
Minister’s Remark on Tesla	Not interested in manufacturing, only in showrooms
Objective	Promote EV production, attract FDI, reduce emissions