India’s EV Turning Point as Automakers Race to Join SPMPCI Before Deadline

Today marks a pivotal moment for India’s electric vehicle (EV) industry as the deadline for the government’s Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI) officially closes. The scheme, rolled out by the Ministry of Heavy Industries, offers a rare and powerful incentive, permission for automakers to import fully built EVs at a drastically reduced import duty, provided they commit to substantial local manufacturing within India. Under SPMPCI, eligible automakers can import up to 8,000 EVs annually at a concessional 15% customs duty, compared to the existing range of 70% to 110%. In return, they must invest at least ₹4,150 crore in building local EV manufacturing infrastructure within three years. The policy further mandates progressive domestic value addition targets 25% by the third year and 50% by the fifth to ensure long-term localisation and technology transfer. This initiative is part of India’s broader effort to transform itself from a market that imports EVs to one that manufactures and exports them. It also aims to create thousands of new jobs, strengthen domestic supply chains, and attract global R&D investments. Officials estimate that the scheme could bring in over $1.5 billion in foreign direct investment, helping India establish itself as a credible global hub for clean mobility production.

Several major global automakers, including Mercedes-Benz, Hyundai, Volkswagen, Kia, and Skoda, are reported to have engaged in talks with the ministry regarding potential investment commitments. However, Tesla remains cautious, prioritising a retail entry into the Indian market before any large-scale manufacturing move. Industry analysts view SPMPCI as a make-or-break opportunity that could reshape competitive dynamics within India’s fast-growing EV segment.

As the window closes, the SPMPCI stands not just as a policy milestone, but as a statement of intent. India is signalling to the world that it’s ready to move from adoption to production, anchoring its 2030 EV and climate targets in a foundation of self-reliance, innovation, and industrial growth. The coming months will reveal which automakers seize this opportunity to help drive India’s electric future forward.