Apply by Oct 21 for SPMEPCI scheme offering 15% customs duty on imported EVs with ₹4,150cr investment commitment & DVA targets.
Key Details of the SPMEPCI Scheme
1. Scheme Overview
✔ Portal Launch: June 24, 2025
✔ Application Deadline: October 21, 2025
✔ Portal URL: spmepci.heavyindustries.gov.in
✔ Minimum Investment: ₹4,150 crore per applicant
✔ Custom Duty Benefit: 15% on imported CBUs (vs standard 60-100%)
2. Strategic Objectives
🚗 Boost EV Manufacturing: Position India as global EV production hub
🌱 Support Net Zero Goals: Accelerate transition to clean mobility
💼 Employment Generation: Create skilled jobs in auto sector
🛠️ Technology Transfer: Encourage global OEMs to localize R&D
3. Eligibility & Benefits
✅ For Global Manufacturers:
- 5-year reduced customs duty (15%) on high-value EVs ($35,000+ CIF)
- Must achieve 25% DVA (Domestic Value Addition) in 3 years
- 50% DVA target by 5th year
💰 For Indian Ecosystem:
- Expected to attract ₹50,000+ crore investments
- Potential to create 1 lakh+ direct jobs
Why This Matters for India’s Auto Industry?
1. Competitive Advantage
🌍 First-Mover Benefit:
- Early entrants get 5-year window to establish local supply chains
- Complements existing PLI Auto & FAME III incentives
🔋 Technology Leapfrogging:
- Accelerates adoption of advanced battery tech, power electronics
- Positions India for EV exports to EU/ASEAN
2. Market Potential
📈 EV Growth Projections:
- 30% CAGR for electric 4-wheelers (2025-30)
- 10-15% EV penetration in passenger cars by 2030
Application Process
📝 Step-by-Step Guide:
- Register on portal with GSTIN & corporate details
- Submit 5-year manufacturing & localization plan
- Provide investment commitment proofs
- Await inter-ministerial approval (60-day timeline)
⚠ Critical Dates:
- Last date: October 21, 2025
- First approvals expected: December 2025
Industry Reactions
*”This 15% duty window makes India competitive vs Thailand/Vietnam for premium EV manufacturing.”*
— Auto Component Manufacturer Association
*”Expect 2-3 global OEMs to commit before deadline, especially those eyeing India as export base.”*
— EV Analyst, Crisil
Comparative Analysis
| Feature | SPMEPCI | PLI Auto Scheme |
|---|---|---|
| Focus | Passenger EVs | All vehicle types |
| Custom Duty Benefit | 15% on CBUs | Not applicable |
| Min Investment | ₹4,150cr | ₹1,000cr |
| DVA Requirement | 25% in 3 years | 50% in 5 years |
Strategic Recommendations for Applicants
🔹 Local Partnership Model: JV with Indian auto majors
🔹 Phased Localization: Start with assembly → battery packs → motors
🔹 Cluster Approach: Set up near existing auto hubs (Pune, Chennai)
