India Opens Doors to Global EV Giants: EV Policy Portal Live under SPMEPCI

In a move that significantly reshapes the contours of global electric vehicle (EV) manufacturing and international investment, India has officially opened applications for global EV manufacturers through a newly launched digital portal under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). This initiative, spearheaded by the Ministry of Heavy Industries, marks a major leap in India's ambition to become a global hub for next-generation automotive innovation and green mobility.

The portal, launched on June 24, 2025, is now live and will accept applications until 6:00 PM IST on October 21, 2025. This digital platform enables interested automotive giants from across the world to submit proposals and gain access to an incentive-rich policy ecosystem aimed at catalysing their entry and expansion in the Indian EV manufacturing landscape.

This major announcement follows the detailed notification of the SPMEPCI scheme, first introduced in March 2024. The portal launch operationalises what is arguably one of the most significant policy interventions by the Indian government to attract direct investment from global EV leaders and integrate India more deeply into international EV supply chains.

Speaking at the launch, Union Minister for Heavy Industries, Shri H.D. Kumaraswamy, emphasized the strategic importance of the scheme: “Guided by the visionary leadership of Prime Minister Shri Narendra Modi, this initiative marks a defining moment in India’s journey towards clean, self-reliant, and future-ready mobility. 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. 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.”

The scheme sets the stage for a paradigm shift in India’s industrial ecosystem. Approved applicants under the scheme are required to make a minimum committed investment of ₹4,150 crore. In return, these applicants are entitled to import a limited number of Completely Built Units (CBUs) of electric four-wheelers at a significantly reduced customs duty rate of 15%, a notable concession from the standard 70% or higher duty, provided the vehicle’s minimum CIF (cost, insurance, and freight) value is at least USD 35,000. This duty benefit will be valid for a period of five years from the date of application approval.

But the benefits do not come without responsibilities. To safeguard the policy's long-term industrial objectives, the SPMEPCI scheme enforces strict domestic value addition (DVA) targets and investment localization requirements. Participating companies must meet phased value addition milestones aligned with the broader vision of 'Aatmanirbhar Bharat' (self-reliant India) and 'Make in India'. The scheme also encourages R&D activities, infrastructure development, and job creation, positioning India not just as a consumer market but as a value-creating production base.

In concrete terms, the scheme allows the import of EVs in limited numbers, depending on the total incentive cap (₹6,484 crore) and the company’s investment commitment. For example, with an investment of ₹4,150 crore and a typical imported vehicle CIF value of USD 35,000, a company could import up to 24,155 units under

reduced-duty terms.

Furthermore, the scheme envisions India as a long-term manufacturing partner rather than a temporary assembly base. A comprehensive framework of eligibility, including financial health, technological credentials, and production plans, is in place. The approved applicant must commence commercial operations within three years and meet minimum revenue generation thresholds—₹5,000 crore by the fourth year and ₹7,500 crore by the fifth to retain the policy benefits.

To ensure compliance, the Ministry of Heavy Industries has laid down rigorous verification protocols, including quarterly progress reports, audits, and certification requirements. In the event of underperformance or misreporting, the scheme provides for penalties, including clawback of duty benefits and legal action.

Importantly for European and UK stakeholders, the scheme not only signals India’s openness to global collaboration but also its strategic intention to elevate its presence in the global EV value chain. As EU and UK EV manufacturers look to diversify production and mitigate supply chain risks, the Indian market now presents a lucrative and policy-supported destination. Additionally, the clear regulatory guidelines and digital interface reduce procedural friction, allowing smoother market entry for established brands and new entrants alike.

This policy milestone arrives at a critical juncture in global climate governance, where countries and corporations are under increasing pressure to reduce emissions, innovate sustainably, and invest in greener technologies. India’s SPMEPCI scheme aligns with this agenda while advancing its own developmental priorities through technology transfer, job creation, and export diversification.

For business leaders operating in or looking to expand within the India-EU/UK corridor, the launch of this portal presents a timely and strategic opportunity. The combination of market scale, favourable policy environment, and rising EV demand in India makes it a compelling proposition for European automotive majors such as Volkswagen, BMW, Stellantis, and British players like Jaguar Land Rover.

As Shri Kumaraswamy rightly noted, this is not just a policy, it is a vision. A vision that welcomes the world to co-create the future of clean mobility with India at its centre.