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India’s Electric-Car Manufacturing Scheme Draws No Applicants, Government Tells Parliament

Companies signaled they will decide only after the IndiaEU FTA is settled.

Overview

  • Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma told the Lok Sabha on December 2 that no automaker applied before the October 21 deadline for the SPMEPCI.
  • Automakers cited uncertainty over the IndiaEU Free Trade Agreement as the primary reason for holding off on applications.
  • Manufacturers also pointed to rare‑earth magnet restrictions that could hinder meeting Domestic Value Addition targets, alongside challenging investment thresholds and timelines.
  • The Heavy Industries Ministry said it conducted extensive outreach through Invest India, other ministries, and Indian embassies, and it is not reopening the window or revising concessions at present.
  • Scheme terms included a minimum INR 4,150 crore investment, permission to import up to 8,000 EVs annually at 15% duty for five years for CBUs priced at $35,000 or more, and DVA milestones of 25% in three years and 50% in five.