The Ministry of Heavy Industries (MHI) has launched the application portal for the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI),’ inviting global and domestic manufacturers to establish electric vehicle (EV) production facilities in the country.

The application portal will remain active until October 21, 2025.

The program aims to attract major global EV manufacturers by offering a reduced customs duty structure and a policy framework that encourages long-term investments in India’s automotive sector.

MHI had recently MHI had recently issued guidelines for SPMEPCI. Investments under this program must target domestic manufacturing of eligible products. If the program’s investment is directed towards a brownfield project, there must be a clear physical separation from current manufacturing facilities.

The guidelines also allow applicants to import completely built units of electric four-wheelers with a minimum cost, insurance, and freight value of $35,000 (~₹2.99 million) at a reduced customs duty rate of 15% for five years from the date of application approval.

To qualify for the program, manufacturers must commit a minimum investment of ₹41.5 billion (~$485.33 million). The program also includes clear domestic value addition targets and requires applicants to meet specified localization milestones to support the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives.

These provisions are designed to ensure that the development of domestic capabilities accompanies the transfer of EV technology. They also aim to ensure that India benefits from both foreign direct investment and increased local innovation.

Earlier this year, the Ministry mandated a 100% domestic content requirement for 18 electric vehicle components under the two-wheeler, three-wheeler, and e-bus segments to be eligible for a subsidy under the PM E-Drive program.

EV sales in India reached a record 1.95 million units in 2024, representing an over 27% year-over-year growth from the 1.53 million units sold in 2023. These vehicles accounted for 3.6% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.