No takers yet for govt’s EV import scheme

Three months after the Centre introduced a scheme providing responsibility concessions on imported electrical vehicles in alternate for commitments to native manufacturing, primarily aimed toward wooing Tesla, no automaker has expressed curiosity.

“No one has come,” a senior authorities official stated in response to a query on what number of auto gamers had evinced curiosity. The Ministry of Heavy Industries launched a portal on June 24 for accepting purposes beneath the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI). The final day for making use of for the scheme is October 21, 2025.

While the import coverage was introduced in March 2024 adopted by a draft notification on pointers for its implementation, the ultimate pointers for it have been notified in June 2025. Under the coverage, firms will probably be allowed to import as much as 8,000 electrical four-wheeler items yearly at a decrease import responsibility of 15%, in opposition to 70-100% at the moment, offered they commit an funding of ₹4,150 crore for establishing native manufacturing services. It should additionally furnish a financial institution assure of not less than ₹4150 crore ($500 million) together with the applying. The unique gear producer (OEM) should obtain 25% DVA (home worth add) inside three years and 50% inside 5 years.

Officials stated that auto makers have been ready for necessary Foreign Trade Agreements resembling these with the U.S. and European Union to conclude incase these provided engaging concessions. They cited the occasion of the FTA with the U.Okay. for instance, the place import duties on U.Okay.-built autos, together with electrical and standard vehicles, are reduce from over 100% to about 10%, however solely for a restricted variety of autos beneath an annual quota. Only giant engine premium autos (petrol above 3000 cc, diesel above 2500 cc), and luxurious vehicles priced above £40,000 (which incorporates value, insurance coverage and freight), are eligible for these concessions; mass-market fashions and lower-priced autos stay excluded.

While a consultant from Tesla attended solely the primary assembly of stakeholders held final yr after the draft pointers have been issued, “there has been no communication” since between the auto large and the federal government, officers stated.

In the meantime, Tesla has opened a showroom every in Mumbai and National Capital Region for utterly constructed items.

To a query on whether or not the federal government would make tweaks to the scheme to make it extra engaging, officers stated there have been no calls for made out of auto firms looking for modifications to the coverage.

Responding to issues from auto makers on the excessive funding price of ₹4,150 crore, the above quoted official dismissed them saying that unique gear producers would merely be diverting the prices incurred on import responsibility to investments made for native manufacturing. However, the official stated some gamers have been involved over the amount of gross sales they might have for vehicles priced above $35,000. 

The tepid response is regardless of earlier indications from vehicle trade executives expressing that international OEMs resembling Hyundai Motor India, Kia India, the Volkswagen Group, and Toyota may very well be eager within the coverage. 

While Vietnamese EV maker arrange an meeting plant in Thoothukudi and pledged an funding of $500 million it doesn’t qualify for the scheme as investments have been made earlier than final yr’s draft notification in March.