Tech
India Unveils EV Manufacturing Guidelines to Boost Green Mobility
New Delhi, India, June 2, 2025 – India has taken a bold step toward a greener future by rolling out new guidelines for electric vehicle (EV) manufacturing under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). Launched to fuel a Make in India EV boom, the policy aims to attract global players and create a thriving local industry. With applications opening soon, here’s what this game-changing plan means for India’s electric dreams.
What’s in the New EV Policy
The guidelines set clear goals:
- Local Production: Companies must achieve 25% domestic value addition by year three and 50% by year five, ensuring parts are made in India.
- Battery Push: Local battery cell production is encouraged, with incentives for setting up plants by 2027.
- Incentives: Firms investing ₹4,150 crore or more can access import duty cuts on up to 8,000 EVs annually, priced above $35,000.
- Safety Rules: EVs must meet AIS-156 Amendment III standards, with BIS-approved battery systems for reliability.
These steps aim to build a strong, homegrown EV ecosystem.
Who Can Join the Race
The scheme welcomes a range of players:
- Established automakers shifting to EVs, like Tata Motors.
- New EV-only companies, including startups and MSMEs.
- Battery and component manufacturers ready to invest in India.
This open door is designed to spark innovation and competition.
Key Dates to Watch
The timeline is tight:
- Applications Open: June 15, 2025, for companies to submit plans.
- First Approvals: By September 2025, selecting the initial batch.
- Production Start: Approved firms must begin manufacturing within three years.
These deadlines keep the momentum high for India’s EV push.
Why This Is a Big Deal
The policy could reshape India’s future:
- Job Growth: Up to five lakh new jobs by 2030, from factories to tech roles.
- Oil Savings: Cutting $15 billion in annual oil imports by boosting EV adoption.
- Global Stage: Positions India alongside China and the U.S. as an EV manufacturing hub.
The plan aligns with India’s net-zero carbon goal by 2070.
What the Industry Is Saying
Voices from the field are optimistic:
- Tata Motors said, “This fits our ₹15,000 crore EV expansion plan,” signaling big moves ahead.
- Ola Electric shared, “We’re ready to apply for battery production incentives to scale up.”
- Climate experts noted, “This is a vital step toward India’s sustainable future.”
The enthusiasm reflects the policy’s potential to drive change.
What Happens Next
More developments are coming:
- Full guidelines will soon be available on the Ministry of Heavy Industries’ website.
- States like Tamil Nadu and Karnataka are vying to host new EV hubs.
- Global giants like Tesla and BYD are eyeing India’s market, watching the scheme closely.
India’s EV revolution is just getting started.
