Latest news with #SchemetoPromoteManufacturingofElectricPassengerCarsinIndia
Hindustan Times
29-06-2025
- Automotive
- Hindustan Times
SPMEPCI scheme to attract foreign players to invest, bring EV portfolio to India: Mercedes-Benz India CEO
Mercedes-Benz sees a boost to the Indian electric vehicle industry with the SPMEPCI. (AP) Notify me The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will attract new foreign auto manufacturers to invest and bring their electric vehicle portfolio to the country, believes Mercedes-Benz India CEO and Managing Director Santosh Iyer. The German automaker that has been leading the electric vehicle segment in the Indian luxury car market with a wide range of products has introduced two new sports cars in the country, the AMG GT 63 4MATIC and GT 63 PRO 4MATIC Coupe, priced at ₹ 3 crore (ex-showroom) and ₹ 3.65 crore (ex-showroom), respectively. Speaking to PTI about the SPMEPCI, Iyer said that it is a great scheme and a great initiative by the Ministry of Heavy Industries (MHI). "I think it's a great scheme and a great initiative by the Ministry for Heavy Industries (MHI) to really come up with such a forward-looking scheme. But this scheme is primarily for new entrants who have not come into India," Iyer reportedly said. Also Read : Upcoming cars in India Under the SPMEPCI, automakers will be permitted to import up to 8,000 electric vehicles in India at a reduced duty rate of 15 per cent compared to the current 70-100 per cent, provided they commit to investing ₹ 4,150 crore in the local EV manufacturing industry. Speaking about Mercedes-Benz's investments in India, Iyer said that the company has invested ₹ 3,000 crore in the OEM's Chakan plant near Pune. 'Today, we are already producing two car models locally at this plant, much before the announcement of the scheme," he further said, while also adding, 'But I think this scheme will surely attract newer players, who are not yet in India, to invest and come with their electric cars." Meanwhile, speaking about the ongoing rare earth magnet crisis, which has hit the panic button in the Indian industry and is fuelling concerns about a possible shutdown in the coming months due to the unavailability of the critical component, Iyer said that in today's time, disruptions happen due to geopolitical issues or supply chain issues, but the company's colleagues involved in the backend are able to manage it quite well. "As of now, we have no disruption in India because of any of these issues," Iyer asserted. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 29 Jun 2025, 08:46 AM IST
Time of India
28-06-2025
- Automotive
- Time of India
SPMEPCI scheme to attract new global EV players to India: Mercedes-Benz India
The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will serve as a major catalyst for new foreign automakers to enter the Indian EV market, said Santosh Iyer, CEO and Managing Director of Mercedes-Benz India , on Friday. Speaking to PTI after unveiling two high-performance sportscars — the AMG GT 63 4MATIC+ and the AMG GT 63 PRO 4MATIC+ Coupe — Iyer welcomed the scheme, calling it a 'forward-looking initiative' by the Ministry of Heavy Industries . The two cars are priced at ₹3 crore and ₹3.65 crore (ex-showroom, India), respectively. 'The scheme is primarily designed for new entrants. We've been in India for three decades and have already invested ₹3,000 crore in our Chakan plant near Pune. We're producing two EVs locally even before the scheme was announced,' Iyer told PTI. 'For us, it's business as usual, but SPMEPCI will encourage new players to enter and invest in India's EV journey.' Under the SPMEPCI scheme , automakers committing ₹4,150 crore in local manufacturing will be allowed to import up to 8,000 electric vehicles at a concessional 15% import duty, significantly lower than the existing 70–100per cent. Supply chain challenges Addressing concerns around supply chain challenges and rare earth magnets, Iyer reassured that Mercedes-Benz has faced no disruptions in India so far, crediting its global backend teams for effective management. On the launch of the new AMG models, Iyer said these performance-oriented vehicles reaffirm the brand's commitment to Indian enthusiasts. 'The AMG GT range is a symbol of engineering precision, raw performance, and emotional connect. Indian customers have shown immense appreciation for AMG's high-performance legacy,' he added.
Time of India
27-06-2025
- Automotive
- Time of India
SPMEPCI scheme to attract foreign players to invest, bring EV portfolio to India: Mercedes-Benz India CEO
Mumbai: The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will attract newer foreign players to invest and bring their EV portfolio to the country, Mercedes-Benz India CEO and Managing Director Santosh Iyer said on Friday. Speaking to PTI after unveiling two new sportscar models -- the all AMG GT 63 4MATIC+ and GT 63 PRO 4MATIC+ Coupe -- Iyer also said while demand momentum continues, 2025 is likely to be a year with marginal growth. The two car models are priced at Rs 3 crore and 3.65 crore (both ex-showroom All India), respectively, the company said. "I think it's a great scheme and a great initiative by the Ministry for Heavy Industries (MHI) to really come up with such a forward-looking scheme. But this scheme is primarily for new entrants who have not come into India," Iyer said. Under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), automakers will be permitted to import up to 8,000 EVs at a reduced duty rate of 15 per cent compared to the current 70-100 per cent, provided they commit to investing Rs 4,150 crore in local EV manufacturing . Live Events "We have been in India for the last 30 years. We have already invested Rs 3,000 crore in the (Chakan near Pune) plant. And today, we are already producing two car models locally at this plant (much before the announcement of the scheme). So, I think, for us, it's business as usual. "But I think this scheme will surely attract newer players, who are not yet in India, to invest and come with their electric cars," Iyer said. On issues concerning rare earth magnets, he said in today's time, disruptions happen due to geopolitical issues or supply chain issues, but the company's colleagues involved in the backend are able to manage it quite well. "As of now, we have no disruption in India because of any of these issues," Iyer asserted. He said that the launch of AMG GT 63 4MATIC+ and the track-oriented GT 63 PRO 4MATIC+ represents Mercedes-Benz's strong commitment to India's growing community of performance motoring enthusiasts . These vehicles embody the pure essence of AMG with uncompromising performance, precision engineering, and an emotional connect that only a hand-built AMG engine can deliver, he said. "Indian customers have shown tremendous appreciation for Mercedes-AMG's high-performance vehicles, and the AMG GT range caters to this passion with technology and uncompromising performance, representing the pinnacle of automotive engineering," Iyer stated. PTI
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Business Standard
25-06-2025
- Automotive
- Business Standard
India opens new application window to invite global EV manufacturers
In a push to promote electric vehicle manufacturing in India, a new portal has been launched for the application process under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). The initiative, unveiled by Union Heavy Industries Minister H D Kumaraswamy, invites global electric vehicle (EV) manufacturers to invest and set up local production units. 'The launch of this portal under the SPMEPCI scheme opens new avenues for global electric vehicle manufacturers to invest in India's rapidly evolving automotive landscape,' Kumaraswamy said. Investment from international EV makers can position India as a leading manufacturing hub for electric vehicles. 'This scheme not only supports our national commitment to achieving Net Zero by 2070, but also reinforces our resolve to build a sustainable, innovation-driven economy. It strengthens the pillars of 'Make in India' and 'Aatmanirbhar Bharat', and positions India as a trusted global hub for next-generation automotive manufacturing and technology leadership,' the minister said. Reliefs linked to investment pledge under SPMEPCI Approved applicants will be allowed to import Completely Built Units (CBUs) of electric four-wheelers (e-4Ws). The imported CBUs must have a minimum CIF (Cost, Insurance, and Freight) value of $35,000. These will be subject to a reduced customs duty of 15 per cent. The concessional duty will be applicable for a period of five years from the date of approval. Approved applicants will be required to make a minimum investment of ₹4,150 crore, as per the provisions of the scheme. Tesla stays away, others join in With the minimum investment threshold of ₹4,150 crore, the scheme is expected to encourage top global and Indian companies to set up long-term manufacturing in India. While Tesla Inc has not shown interest in India's scheme to attract global investment in electric vehicle (EV) manufacturing, global automakers such as Mercedes-Benz, Škoda Auto Volkswagen, Hyundai Motor, and Kia Motors are keen to participate, Kumaraswamy said. Embassies tapped to boost EV drive India is reaching out to countries like the US, Germany, Czechoslovakia, and Vietnam, as well as their respective embassies, to attract investment from global automotive companies to manufacture electric vehicles in India. A four-month window will be given for these companies to apply for SPMEPCI. As of now, Tesla has not shown interest in participating in the scheme. 'Ultimately, we will know which global automakers come on board by October 21,' said Kamran Rizvi, secretary of the Ministry of Heavy Industries.
Time of India
25-06-2025
- Automotive
- Time of India
Centre launches portal for auto-makers to apply under electric car scheme
Global electric vehicle (EV) giants can now apply for the scheme to promote manufacturing of electric passenger cars in India, which offers significantly lower import tax for automakers that pledge to invest in domestic electric vehicle production. Union Heavy Industries Minister H D Kumaraswamy inaugurated the portal for accepting applications under the scheme, which will remain open till October 21. He reiterated that EV giant Tesla is only interested in opening showrooms in India to sell its cars, and not inclined towards setting up manufacturing facilities in the country. "Their (Tesla's) interest is only to open the showroom. They want to sell their car in India. Other than that, actually, there is no further development about this," he said. Responding to another question on reports quoting Mercedes-Benz officials saying that it was not interested in investing in the scheme, Kumaraswamy said the luxury car-maker has already invested "in a big way" before the opening of the application window on Tuesday. Officials explained that under the scheme, eligible investment must be capitalised in the books of account of the applicant "after the date of approval", therefore, equipment and machinery "must be put to use after becoming an approved applicant". The minister shared that 4-5 auto firms have shown preliminary interest in the scheme, however, it remains to be seen how many companies actually apply for it, as the portal has been opened from Tuesday. Further, the Ministry of Heavy Industries shall have the right to open the application window, as and when required till March 15, 2026. Secretary in the Heavy Industries Ministry Kamran Rizvi said original equipment manufacturers (OEMs) applying under the scheme and availing lower import tax will have to roll out a car with at least 25 per cent domestic value addition (DVA) within three years time, and increase the DVA to 50 per cent within five years. He said the heavy industries ministry is writing to all countries having automotive majors, including Germany, the US, the UK, Czechoslovakia, and their embassies for encouraging participation under the scheme. However, he said, the investment restrictions in India applicable to land border sharing countries like Pakistan and China, among others, shall remain in place. Automakers will be permitted to import up to 8,000 EVs at a reduced duty rate of 15 per cent, compared to the current 70-100 per cent, provided they commit to investing ₹4,150 crore in local EV manufacturing, according to the new EV policy notified by the government. They will be required to begin operations at their manufacturing facilities in India within three years of receiving approval and must meet specified local content requirements, according to the notified guidelines under the Scheme to Promote Manufacturing of Electric Passenger Cars in India. The scheme was notified on March 15 last year by the heavy industries ministry. The maximum duty foregone per applicant has been capped at ₹6,484 crore on the investment made under the scheme. The applicant is required to set up a manufacturing facility and commence operations for manufacturing of eligible products -- e-4W within a period of three years from application approval date. Expenditure incurred on new plant, machinery, equipment and associated utilities, engineering research and development (ER&D) will be eligible for availing investment-linked benefits under the scheme. However, expenditure on land will not be considered, although new buildings of the main plant and utilities will be considered as part of the investment, provided it does not exceed 10 per cent of committed investment. The expenditure incurred on charging infrastructure would be considered up to 5 per cent of the committed investment. The applicant's commitment to set up manufacturing facilities, achievement of DVA and compliance with conditions stipulated under the scheme shall be backed by a bank guarantee from a scheduled commercial bank in India, equivalent to the total duty to be foregone, or ₹4,150 crore, whichever is higher. A non-refundable application fee of ₹5,00,000 will be payable by the applicant while filing the application form. To qualify and receive benefits under the scheme, an applicant is required to have a global group revenue from automotive manufacturing of a minimum ₹10,000 crore. Moreover, the global investment of a company or its group companies in fixed assets must be at least ₹3,000 crore, based on the latest audited annual financial statements at the time of filing the application.>
