The North News
New Delhi, June 3
India’s bid to become a global electric vehicle (EV) manufacturing hub is gaining momentum, with top automakers Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia expressing interest in setting up operations under a new policy initiative. Tesla, however, is not on board. Union Heavy Industries Minister H.D. Kumaraswamy confirmed the development on Monday, saying, “Tesla, we are not actually expecting interest from them… They are not interested in manufacturing in India.”
The remarks come as the central government formally launches the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), a policy push aimed at accelerating EV adoption, cutting emissions, and drawing foreign investment into India’s automotive sector. The scheme, notified on March 15, 2024, aligns with Prime Minister Narendra Modi’s goals of achieving net-zero emissions by 2070 and boosting domestic manufacturing under the ‘Make in India’ and ‘Aatmanirbhar Bharat’ programmes.
“This is a strategically crafted initiative to position India as a global hub for EV manufacturing,” Kumaraswamy said during a press briefing, calling the scheme a “balancing act” between promoting advanced EV technologies and supporting local supply chains.
Under SPMEPCI, foreign EV makers can import fully built electric cars (CBUs) with a minimum cost, insurance and freight (CIF) value of $35,000 at a reduced customs duty of 15% for five years. The offer is contingent on a minimum investment of ₹4,150 crore (around $500 million) and compliance with phased domestic value addition (DVA) benchmarks.
Operational guidelines were released by the Ministry of Heavy Industries (MHI), and the Department of Revenue has already revised customs notifications to support the policy. Companies will soon be able to apply through a dedicated online portal.
While global EV leaders like Mercedes and Hyundai are warming up to the scheme, Tesla’s continued disinterest marks a notable absence, especially given its past flirtations with entering the Indian market. The government, however, appears unfazed and is pushing ahead with broader goals of supply chain localisation and green industrial growth.
