New Guidelines for EV Passenger Car Manufacturing Scheme

On 2nd June 2025, the Government of India released detailed guidelines for the "Scheme to Promote Manufacturing of Electric Passenger Cars in India" to attract global EV investments.

Key Points

Investment Boost: Approved applicants must invest a minimum of Rs. 4,150 crore to qualify under the scheme.
Import Duty Relief: EVs with CIF value ≥ USD 35,000 can be imported at 15% customs duty for 5 years.
EV Import Cap: Maximum 8,000 electric four-wheelers per year can be imported at reduced duty; unused quota can be carried forward.
Duty Foregone Limit: Capped at lower of Rs. 6,484 crore or the applicant’s total investment.
Domestic Value Addition: Milestones set to promote local production and support 'Make in India' and 'Aatmanirbhar Bharat'.
Green Goals: The scheme supports India’s Net Zero 2070 goal, green mobility, and manufacturing excellence.