Scheme to Promote Manufacturing of Electric Passenger Cars in India
Posted 22 Jul 2025
Updated 25 Jul 2025
2 min read
Why in the News?
Recently, the Guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars have been notified by the Ministry of Heavy Industries.
Objectives
Salient Features
To attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles.
The scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of "Make in India".
Ministry: Ministry of Heavy Industries (MHI).
Implementation:Project Management Agency (PMA).
PMA refers to the financial institution(s) or any other authority(ies) appointed by GoI to act on its behalf.
Tenure: 5 years or as notified.
Eligible Investments: Expenditure incurred on new Plant, Machinery, Charging Infrastructure, and Equipment and associated utilities across India.
Expenditure made on second hand/ refurbished plant, machinery etc., will not qualify.
Eligibility: The applicant or its group companies must meet the following criteria to qualify for benefits under the scheme:
The global revenue from automotive manufacturing must be at least ₹10,000 crore, as per the latest audited financial statements.
The company or its group must have a global fixed asset investment (gross block) of at least ₹3,000 crore.
The minimum investment commitment in India over 3 years must be ₹4,150 crore (approx. USD 500 million).
There is no upper limit on investment commitment in India.
The company must achieve at least 25% domestic value addition within 3 years.
It must further achieve 50% domestic value additionwithin 5 years from the date of approval.
The applicant's commitment to setup manufacturing facilities and achievement of Domestic Value Addition (DVA) shall be backed by a bank guarantee from a scheduled commercial bank in India.
Performance Criteria: All electric passenger vehicles shall meet the performance criteria of Production Linked Incentive (PLI) Auto scheme.
Benefits:
The applicant will be allowed to import Completely Built-in Unit (CBUs) of e-4W manufactured by them at a reduced customs duty of 15% subject to the conditions as per this Scheme.
CBU is a vehicle that is in a completely assembled form.
The maximum number of e-4W allowed to be imported at the aforesaid reduced duty rate shall be capped at 8,000 numbers per year.
The lower customs dutyof 15% would be applicable for a total period of 5 years.
