India’s electric car push: Govt launches application portal for global EV makers

The Ministry of Heavy Industries (MHI) on Tuesday launched the online portal for inviting applications under the scheme to promote the manufacturing of electric passenger cars in India.

The application portal opened at 10.30 am and will remain operational until 6 pm on October 21, 2025, the ministry said in a release.

The scheme, notified on March 15, 2024, seeks to attract investments from global EV manufacturers while strengthening the domestic manufacturing ecosystem. The notifications and guidelines are available on the ministry’s website.

Speaking at the launch, Union Minister for Heavy Industries H.D. Kumaraswamy said the initiative will play a crucial role in advancing India’s goal of achieving net zero emissions by 2070.

“The launch of this portal under the SPMEPCI scheme opens new avenues for global electric vehicle manufacturers to invest in India’s rapidly evolving automotive landscape,” Kumaraswamy said.

"This scheme not only supports our national commitment to achieving Net Zero by 2070, but also reinforces our resolve to build a sustainable, innovation-driven economy."

Under the scheme, approved applicants will be allowed to import electric four-wheelers as Completely Built Units (CBUs) with a minimum Cost, Insurance and Freight (CIF) value of $35,000 at a reduced customs duty rate of 15% for five years from the date of application approval.

Unused import quotas can be carried forward, but the total duty forgone will be capped at either ₹6,484 crore or the applicant’s actual investment, whichever is lower.

To qualify, applicants must commit a minimum investment of ₹4,150 crore and meet progressive domestic value addition (DVA) targets over the scheme’s duration.

The government said the scheme offers a balanced approach between allowing entry of advanced EV technologies and nurturing domestic manufacturing capabilities.

“Tesla... They are more (interested) only to start showrooms. They are not interested to (start) manufacturing in India,” Kumaraswamy told reporters during a press briefing on new guidelines for the scheme to promote manufacturing of electric cars in India.

An official familiar with the matter revealed that while a Tesla representative took part in the initial round of stakeholder discussions on the scheme, the company did not participate in subsequent meetings.

"So far they (Tesla) have not shown interest. Tesla representative only participated in the first round of stakeholder discussions for the Scheme to Promote Manufacturing of Electric Cars in India. The company's representative was not part of the second and third round of the stakeholder deliberations," PTI had quoted the official as saying.