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The Indian Government has finalized the new EV policy and issued guidelines for its Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMPPCI).
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- Under the guidelines, the approved applicants will have to setup the four-wheeler EV manufacturing facility with a minimum investment of ₹4,150 crores.
- Manufacturing facility must become operational within three years from the date of receiving the approval. The manufacturer will also have to achieve a minimum domestic value addition of 25% within same period.
- The DVA should increase to 50% within five years. The approved applicants will also be permitted to import completely built units (CBU) of four-wheeler EVs at a reduced custom duty of 15% (instead of 110% earlier).
- This reduced import duty is applicable for five years only and has an annual quota of up to 8,000 EVs priced above $35,000. Submissions will open shortly and issuance of approval letters will start from August 2025.
- SPMPCI applications will be considered only from those auto manufacturers which earn minimum annual revenue of ₹10,000 crore from automobile manufacturing and invest minimum ₹3,000 crore in assets globally.
- It’s noteworthy that Tesla, which is soon to enter in India, hasn’t shown interest in setting up a local facility. However, Mercedes-Benz, Skoda, Volkswagen, Hyundai and Kia have formally expressed interest for the same.
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