India Launches EV Manufacturing Portal: Global Automakers Can Import Premium EVs at Slashed 15% Customs Duty Under SPMEPCI Scheme [Read Order]

The most significant change is the sharp reduction of customs duty on imported premium EVs, with the rate now slashed to just 15% for cars priced above $35,000. This is a big drop from the earlier rate of 100–110%, and is expected to make India a more attractive destination for global EV players.

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To benefit from this reduced customs duty, automakers are required to invest a minimum of ₹4,150 crore (around $500 million) in setting up manufacturing facilities in India within three years. They must also achieve 25% local value addition within three years and 50% within five years.

The scheme allows eligible companies to import up to 8,000 EVs per year at the lower duty rate, provided these investment and localization milestones are met.

The government’s move is designed to strike a balance between encouraging foreign investment and supporting domestic manufacturing. By linking the customs duty reduction to concrete investment and localization targets, the policy ensures that tax concessions are directly tied to the growth of India’s EV ecosystem.

This approach is expected to bring advanced technology, create jobs, and help India progress towards its clean energy goals.

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Applications for the scheme are being accepted through the new portal until October 21, 2025. Both new entrants and existing manufacturers willing to make fresh investments can apply.

The overall aim is to make India a global hub for EV manufacturing, while also giving Indian consumers access to world-class electric vehicles at more competitive prices.

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