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Ministry of Heavy Industries Issues Guidelines for SPMEPCI Scheme to Boost EV Passenger Car Manufacturing.

National | Dated: 06 Jun 2025

In June 2025, the Ministry of Heavy Industries (MHI) released detailed guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).

🎯 Key Highlights:

  • - The initiative is designed to attract new investments from global electric vehicle (EV) manufacturers and establish India as a key hub for EV production.
  • - Originally launched in March 2024, the SPMEPCI scheme is aligned with India’s broader climate goal of achieving net-zero carbon emissions by 2070.

💡 Other Important Facts:

  • (i) Approved EV manufacturers will be permitted to import electric four-wheelers (e-4Ws) as Completely Built Units (CBUs) with a minimum Cost-Insurance-Freight (CIF) value of USD 35,000 at a reduced customs duty rate of 15%, valid for a period of five years.
  • (ii) Applicants must commit a minimum investment of Rs. 4,150 crore (approximately USD 500 million) to set up EV manufacturing units in India within three years of receiving approval from the Ministry of Heavy Industries.
  • (iii) The scheme caps annual concessional imports at 8,000 e-4Ws. However, any unused quota for a given year can be carried forward to the following year.

📚 Test Your Knowledge:

The SPMEPCI scheme is primarily focused on boosting manufacturing of which of the following?

Correct Answer: Electric passenger cars

🚀 Quick Recap: