Government sources said that Skoda-Volkswagen and Mercedes Benz will announce investment plans to manufacture electric cars in India. They said that the Ministry of Heavy Industries (MHI) will present SOPS by a plan to enhance the manufacture of passenger cars in India (SPMepCI).
The sources said that the official announcement is expected soon.
Meanwhile, the Minister of Heavy Industries HD Kumaraswamy said on Monday that Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia showed the manufacture of electric cars in India under SPMepci. He added that Tesla was not interested.
“Tesla, we don’t actually expect attention to them … they are not interested in manufacturing in India,” said Kumarasuami.
The scheme was notified on March 15, but the guidelines were issued on Monday.
Officials said the window that must be applied under the scheme would open within two weeks. To encourage global manufacturers to invest, approved applicants will be allowed to import fully built units (CBUS) from the four electrical wheels with the minimum CIF value of $ 35,000 in a 15 % reduced customs duty for five years from the date of approval of the request.
Applicants must invest in the minimum of 4,150 rupees according to the provisions of the chart.
The application window will remain, through notification invitation applications, open for 120 days or more. The Ministry of Heavy Industries reserves the right to open the application window as needed until March 15, 2026.
Local players such as Tata Motors and Mahindra & Maahindra have invested millions of dollars in local EV manufacturing, with more in the future, and pressed against duties discounts. EV sales in India, dominated by Tata Motors, formed only 2.5 percent of the total car sales of 4.3 million in 2024. The government wants to increase this to 30 percent by 2030.
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