Latest news with #SPMEPCI
India Today
5 hours ago
- Automotive
- India Today
India slashes EV import duties to 15% to attract global carmakers
In a major move to boost electric vehicle (EV) manufacturing and adoption, the Ministry of Heavy Industries has unveiled a new policy titled 'Scheme to Promote Manufacturing of Electric Passenger Cars in India' (SPMEPCI). The initiative significantly reduces import duties on electric vehicles from 110 per cent to just 15 per cent, aiming to lure global automakers into investing in India's EV incentivesTo benefit from the reduced import tariff, automakers must commit to investing at least Rs 4,150 crore (approximately $500 million) within three years toward manufacturing electric cars in India. The policy allows manufacturers to use existing production facilities, although previous investments and land/building costs are not counted towards the mandatory investment return, the reduced 15 per cent customs duty will apply for a five-year period, capped at 8,000 imported electric vehicles annually—provided each unit is priced above $35,000 (approx Rs 30 lakh). The annual quota is flexible, allowing carryover of unused units, and total benefits are limited to Rs 6,484 crore or the actual investment made—whichever is targets and milestones Participating carmakers must meet a series of performance targets, including:Annual turnover of Rs 2,500 crore by the second year,Rs 5,000 crore by the fourth year, andRs 7,500 crore by the fifth addition, companies must:Set up local manufacturing facilities by the third year,Achieve 25 per cent local value addition by the third year, andIncrease this to 50 per cent by the fifth investment expenses include R&D, machinery, and charging infrastructure (up to 5 per cent of the total investment). Land and buildings used directly for manufacturing can account for up to 10 per Industries Minister HD Kumaraswamy confirmed that several global automakers—Hyundai, Kia, Mercedes-Benz, Skoda, and Volkswagen—have already expressed interest in availing the scheme's Tesla is unlikely to participate in local manufacturing. Despite its long-awaited entry into the Indian market in 2025, the American EV company reportedly plans only to open showrooms and import vehicles—making its offerings subject to the full 110 per cent import duty."Tesla is not expected to invest in manufacturing here. They are likely to begin with showrooms only,' Kumaraswamy requirementsTo apply for the scheme, carmakers must meet the following global financial benchmarks:A minimum of Rs 10,000 crore in annual automotive revenueAt least Rs 3,000 crore in fixed online portal for SPMEPCI applications is expected to go live soon, with approval letters to be issued from August 2025 to Auto Today Magazine
The Hindu
a day ago
- Business
- The Hindu
Falling short: on India's EV journey
On June 2, India took a turn for the better in its transport electrification journey by offering a concessional import duty of 15% on completely built-up units. This is contingent on the EV manufacturer investing a minimum of about ₹4,150 crore over three years to localise manufacturing in India, with a base domestic value add of 25% in three years, going up to 50% in another two years. The notification, under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) announced in March 2024, allows for a maximum import of 8,000 completely built units annually for each manufacturer for five years. The SPMEPCI adds to the bouquet of policies that attempts to boost EV adoption and manufacturing. However, these policies put together fall short of addressing a pressing issue in India's journey to decarbonise and transform mobility — technology transfer. India began this journey in 2015, about five years later than most large economies. An outlay of ₹895 crore for the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) scheme, for five years, expanded to ₹10,000 crore in 2019. China announced its ambitious New Energy Vehicle subsidy programme in 2009, which, coupled with mandatory joint venture manufacturing of EVs until 2022, enabled technology transfer. In addition, a reduced import duty on EVs (25% in 2010 to 15% in 2018), and cumulative incentives of about $230 billion in the past 15 years — the most by any country — enabled China to achieve the highest global EV adoption rate. This also supported rapid charging infrastructure deployment, making China the largest producer and consumer of EVs. The U.S. began this journey in 2010 with an initial outlay of $25 billion for its Advanced Technology Vehicles Manufacturing Loans Program. This was greatly expanded under the Biden administration's Inflation Reduction Act. But its EV adoption rate is much lower than China's. In 2024, out of 17 million global EV car sales, China alone accounted for 11.3 million, followed by Europe with 3.2 million, the U.S. with another 1.5 million, and the rest of the world accounting for the remainder. China's vertical integration of battery manufacturing, from mining, processing to assembling, has aided economies of scale with competitive pricing of EVs against conventional ICE vehicles. For now, the 25% DVA that India could aim for under the just announced scheme would be repurposing locally made auto components meant for ICE vehicles to EVs and layering it with Software-as-a-service. But to obtain the crucial technology for the heart of the EV — its battery — India must replicate its approach to localising ICE manufacturing, which is to mandate joint ventures with local ICE or EV makers, and gradually allow for a complete open market.
NDTV
a day ago
- Automotive
- NDTV
India's New EV Policy Cuts Import Duties For Global Automakers
The Indian government has launched a new electric vehicle (EV) policy that lowers import duties on electric cars from 110 percent down to 15 percent. This initiative aims to attract major global companies to invest in EV production in India, supporting the local economy and promoting cleaner transportation. New EV Policy: Details Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), offers lower import duties to companies that invest at least 500 million Dollars (approx. Rs 4,150 crore) in new EV manufacturing facilities in India within three years. Existing factories can also be utilized. To qualify for these benefits, manufacturers must meet certain criteria including the need to achieve an annual turnover of at least Rs 2,500 crore by the second year, Rs 5,000 crore by the fourth year, and Rs 7,500 crore by the fifth year. Additionally, they must reach local value-addition targets of 25 percent by the third year and 50 percent by the fifth year. Moreover, a 15 percent import duty reduction applies to fully-built electric vehicles priced above 35,000 Dollars (approx. Rs 30 lakh). Each eligible manufacturer can import up to 8,000 units each year, and any unused quota can be carried over to the next year. The maximum benefits from this duty reduction are topped at Rs 6,484 crore or the actual investment amount, whichever is lower. Investments can cover expenses like research and development (R&D), machinery, and production tools. Up to 5 percent of the total investment can be spent on charging infrastructure, and up to 10 percent can go towards land and factory buildings. (To be eligible for this scheme, automakers need at least Rs 10,000 crore in global automotive revenues and Rs 3,000 crore in assets) New EV Policy: Tesla's Potential Entry While the policy looks favorable with Tesla's past requests to lower import duties, the company isn't planning to set up manufacturing in India as of now. If Tesla decides to produce vehicles locally, it could benefit from lower tax rates. However, Tesla is currently focusing on importing cars, so they might miss out on the incentives offered by the new policy.
Mint
2 days ago
- Automotive
- Mint
Tesla leases space in Mumbai's Lodha Logistics Park, expanding India footprint
Bengaluru: American electric carmaker Tesla Inc. has leased 24,565 sq. ft. of space at Lodha Logistics Park in Mumbai's Kurla West. The transaction adds to the Elon Musk-promoted company's steady expansion of its real estate footprint in India—through offices, showrooms, and now warehousing—as it inches towards an expected market entry. The five-year lease was signed between Tesla India Motor & Energy Pvt. Ltd and Lodha Developers, and registered on 16 May. Tesla will pay a starting monthly rent of ₹ 37.53 lakh, totalling over ₹ 24 crore over the lease term, according to documents accessed by CRE Matrix, a real estate data analytics firm. A person familiar with the development said the leased space may be used as a service centre for Tesla's electric vehicles. The person added that the company may expand within the facility in future. The deal marks Tesla's third lease in Mumbai this year. In addition to a 30-seater office in a co-working centre in Kurla, it also took up space in the high-profile Maker Maxity complex in Bandra-Kurla Complex (BKC) at a record rate of ₹ 881 per sq. ft. Lodha Logistics Park is a 400,000 sq. ft in-city distribution centre catering to last-mile delivery needs of e-commerce, quick-commerce and cloud kitchen firms. Tesla and Lodha Developers did not respond to Mint's queries. Beyond Mumbai, Tesla leased 5,850 sq. ft. of office space in Pune last year and has recently taken showroom space in Delhi. 'Tesla's India entry is taking shape through a deliberate, multi-city rollout—from its office in Pune to flagship showrooms in BKC and Delhi-NCR, co-working presence in BKC, and now a strategic warehousing facility in Kurla West,' said Abhishek Kiran Gupta, CEO of CRE Matrix. 'This 24,565 sq. ft. lease at ₹ 153 per sq. ft. is more than a real estate transaction—it's a signal of intent. We're witnessing Tesla build a high-impact EV ecosystem across India, anchored by prime commercial and logistics assets.' Still, questions remain about Tesla's manufacturing plans. On Monday, Union minister for heavy industries H.D. Kumaraswamy said the company has not expressed interest in participating in the government's scheme to promote domestic EV manufacturing (SPMEPCI), Mint reported.
NDTV
3 days ago
- Automotive
- NDTV
Elon Musk's Tesla "Not Interested" In Manufacturing In India: Minister
New Delhi: Tesla, the Elon Musk-owned electric vehicle giant, is not interested in manufacturing in India and is keen on opening showrooms, Union Minister for Heavy Industries HD Kumaraswamy said on Monday. The remarks came amid the government's push to promote domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs). " are only to start showrooms. They are not interested in manufacturing in India," the minister said. Heavy Industry Secretary Kamran Rizvi, however, added, "The real intent we'll know when we open the application". "If the company still feels like investing. What the minister is telling is about what come and tell informally," he said. The minister added that many European companies like Hyundai, Mercedes Benz, Skoda and Kia have shown interest in manufacturing units in India under the new EV policy. Earlier, there were reports that Tesla was interested in importing Tesla cars into India and subsequently selling them through their showrooms in India. Tesla boss Musk had in the past indicated that he was interested in investing in India, but "high import duty" structures were a bone of contention. Tesla's intention to come into India had intensified after India announced its new EV policy, under which import duty was reduced to 15 per cent and many incentives were provided for setting up a manufacturing plant in India. Meanwhile, Elon Musk's father, Errol Musk, who is in India, appeared keen on Tesla's presence in the country. "That is something that I have to be careful not to say too much about. Tesla is a public company. It's not you look at India and the population, the kind of people you've got here, the energy and everything and when I hear that, with great respect, BYD and various others are coming in, and Tatas and Mahindra are making great cars, I'm very inclined to say, wait, why aren't we having Teslas here. But I can't say too much. That's just a personal point of view," he said. He was answering a query about plans for Tesla's presence in India. The central government on Monday notified guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India. The central government approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs). The initiative is aligned with India's national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation. Ministry of Heavy Industries (MHI) has issued a notification regarding detailed guidelines for the "Scheme to Promote Manufacturing of Electric Passenger Cars in India" (SPMEPCI / the Scheme)MHI had issued the Scheme notification on March 15 2024. The Department of Revenue also issued the notification on March 15, 2024, for reduced import duties in line with the provisions of the scheme. The notice for inviting applications under the Scheme is proposed to be notified shortly, whereby the prospective applicants would be able to submit online applications. The scheme shall help 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". To encourage the global manufacturers to invest under the Scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced customs duty of 15% for a period of 5 years from the Application Approval Date. Approved applicants would be required to make a minimum investment of Rs 4,150 crore in line with the provisions of the scheme.
