The Indian government has officially opened an online portal allowing automobile manufacturers to apply under its new electric passenger car scheme. The application window will remain open until October 21, 2025. Providing a structured opportunity for global and domestic automakers to invest in India’s EV ecosystem.
Key Incentives on Offer
Under the scheme, approved companies can import up to 8,000 fully built electric vehicles annually. Priced at $35,000 or more, at a significantly reduced customs duty of 15%. These benefits are valid for five years, offering manufacturers a smoother entry into the Indian market while they establish local operations.
Substantial Investment Requirements for Portal
To qualify, applicants must commit to investing a minimum of ₹4,150 crore in India within three years. The total benefit granted under the scheme will be capped at ₹6,484 crore. Or the actual investment amount, whichever is lower. This structure ensures that only serious, long-term players benefit from the policy.
Localization and Compliance Targets for Portal
Manufacturers must meet clear domestic value addition (DVA) targets—25% within three years and 50% within five years of approval. Investments will include plant setup, machinery, research and development, and a small allocation for EV charging infrastructure. Land acquisition costs will not be counted, and bank guarantees will ensure compliance.
Eligibility Criteria and Application Fee for Portal
The scheme is open to automakers with a minimum global revenue of ₹10,000 crore and fixed assets worth at least ₹3,000 crore. A non-refundable application fee of ₹500,000 must be paid to initiate the process. Reflecting the government’s intent to filter only serious applicants.
Boosting India’s EV Goals
The government designed this initiative to align with national objectives like ‘Make in India’ and ‘Atmanirbhar Bharat,’ support India’s net-zero carbon goals, strengthen the domestic EV supply chain, create jobs, and reduce reliance on imports.
Tesla and Other Global Brands Eye the Opportunity
Though several global carmakers have expressed interest, including Tesla, no company has yet formally committed to the scheme. However, the competitive tax structure and growing EV demand in India make it a compelling opportunity for expansion.
Looking Ahead
The portal will remain open for applications for 120 days, with a possible extension to March 15, 2026. Approved companies must commence local manufacturing within three years and fulfill localization targets in a phased manner. The scheme has the potential to reshape India’s electric vehicle future.
