Major international car manufacturers, including Mercedes-Benz, Hyundai, Skoda-Volkswagen, and Kia, have expressed interest in EV production in India, Union Heavy Industries Minister H. D. Kumaraswamy announced during a press briefing on Monday.
The interest follows the government’s unveiling of detailed guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India, a policy initiative aimed at attracting global investment and positioning India as a key player in EV manufacturing. Although the scheme was initially announced on March 15 last year, the Ministry of Heavy Industries (MHI) officially released its implementation framework this week.
Minister Kumaraswamy stated that the application window for companies to formally apply under the scheme will open shortly.
The scheme provides significant incentives to approved applicants, including the opportunity to import Completely Built Units (CBUs) of electric four-wheelers at a reduced customs duty rate of 15%, down from the standard rate. These imports must have a minimum Cost, Insurance, and Freight (CIF) value of $35,000 and are permitted for a period of five years from the date of application approval.
To qualify, applicants must commit to a minimum investment of ₹4,150 crore in India’s EV manufacturing sector. The scheme caps annual imports at 8,000 units per approved applicant, with remaining quotas allowed to be carried forward to subsequent years.
Officials emphasized that the initiative not only aims to boost domestic production and job creation but also supports the broader objectives of the government’s ‘Make in India’ campaign and clean mobility goals. By opening the doors to global automotive leaders, India is seeking to establish itself as a competitive hub for electric vehicle production in the years ahead.
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