- The Indian government is making efforts to revive interest in its electric vehicle (EV) import scheme by organising a workshop for companies interested in importing premium electric cars at lower import tariffs.
- The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) allows companies to import electric cars with reduced tariffs under certain conditions.
The Indian government is making efforts to revive interest in its electric vehicle (EV) import scheme by organising a workshop for companies interested in importing premium electric cars at lower import tariffs, according to a report by the Economic Times. This initiative aims to gather feedback and understand the reasons behind the limited interest in the scheme, which was initially launched with high expectations.
Last year, India introduced a scheme to encourage the import and local production of high-end electric vehicles by offering reduced import tariffs. This move was intended to attract major EV manufacturers, particularly Tesla, which had previously expressed interest in entering the Indian market if import duties were reduced. However, the response to the scheme has been less enthusiastic than anticipated, leading the government to engage with stakeholders once again.
According to the report, the government plans to host a workshop later this month for companies interested in the scheme. This workshop will provide companies with a platform to better understand the scheme and offer feedback that could influence the final regulations.
This will be the second round of consultations; the first was held in April 2024 and included major companies like Tata Motors, Maruti Suzuki, Hyundai, BMW, and Mercedes. Tesla’s representative in India, The Asia Group, also attended that meeting. Despite these efforts, only a few companies have shown strong interest in participating in the scheme.
The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) allows companies to import electric cars with reduced tariffs under certain conditions. Companies are required to invest at least $500 million (approximately ₹4,150 crore) over five years, either by building EV factories or setting up EV charging stations.
Firms must achieve at least 25 per cent domestic value addition (DVA) within three years and increase it to 50 per cent in five years. Approved companies can import electric cars at a reduced 15 per cent customs duty on vehicles costing $35,000 and above, compared to the usual higher rate. Additionally, companies can import up to 8,000 electric cars annually at this lower rate, with unused import allowances being transferable to the next year.
Despite these incentives, few companies have committed to meeting the high investment and localisation requirements. The government hopes that further consultations will clarify whether companies need more incentives or if adjustments to the policy could enhance participation. With major players like Tesla and VinFAST observing the scheme’s development, the government’s response could significantly influence India’s EV landscape in the coming years.