Centre rolls out Rs 4,150 cr EV push, invites Tesla, global giants to manufacture locally

The Indian government has launched a new initiative under the SPMEPCI to attract global electric vehicle (EV) manufacturers to invest in setting up local manufacturing units. Union Heavy Industries Minister HD Kumaraswamy announced the initiative, inviting companies like Tesla to participate. Kumaraswamy stated that formal communications will be sent to embassies of various countries, including the US, Germany, Vietnam, the UK, and Czechoslovakia.

Despite previous hints from Tesla CEO Elon Musk about seeking greater concessions, the company has only imported and sold cars in India through its own showrooms. However, the Centre remains committed to encouraging Tesla to expand its presence in the country.

Announced by the Heavy Industries Ministry, the initiative is part of a broader strategy to bolster the 'Make in India' campaign and establish India as a leader in next-generation automotive technology.

Kumaraswamy, in a social media announcement, stated, "Proud to announce the launch of the online application portal for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)." This initiative aims to attract global EV manufacturers to establish production facilities in India.

Under the visionary leadership of Hon’ble PM Shri @narendramodi avaru, India takes a bold leap towards green mobility.

The new policy sets a minimum investment threshold of Rs 4,150 crore, creating an encouraging environment for both domestic and international players to set up long-term manufacturing bases in India. Kumaraswamy emphasised, "With a minimum investment threshold of Rs 4,150 crore, it provides an enabling policy environment for leading global and domestic players to establish long-term manufacturing footprints in the country." This effort aligns with India's goal to achieve Net Zero by 2070, reinforcing its commitment to a sustainable and innovation-driven economy.

The initiative coincides with India's increasing focus on reducing reliance on foreign resources, particularly critical minerals from China, necessary for EV batteries. The Global Trade Research Initiative (GTRI) advises that "India should prioritise research and development in next-generation battery technologies that minimise dependence on scarce minerals, positioning itself as a global leader in EV innovation." This sentiment is echoed in the Economic Survey 2025, which highlights the importance of public transportation for energy transition: "...given India’s vast size and limited land availability, public transportation is a more efficient alternative for viable energy transition."

The scheme invites applications to be submitted via the online portal spmepci.heavyindustries.gov.in, with submissions open from June 24 until October 21, 2025. The policy includes duty cuts on imported electric cars, provided manufacturers invest in setting up local plants. This move is expected to not only boost domestic manufacturing but also create significant employment opportunities, further supporting India's ambition to become a global hub for electric vehicles.

Global car manufacturers such as Mercedes-Benz, Kia Motors, Hyundai Motor, Skoda, and Volkswagen have expressed interest in manufacturing in India. However, notable exceptions include Tesla and China’s BYD, which have opted for alternative strategies. This new policy is seen as a crucial step in encouraging other global players to contribute to the EV landscape in India.

This initiative represents a significant step forward in India's commitment to fostering a competitive and sustainable electric vehicle market. As minister Kumaraswamy noted, "This scheme not only supports our national commitment to achieving Net Zero by 2070, but also reinforces our resolve to build a sustainable, innovation-driven economy. It strengthens the pillars of ‘Make in India’ and ‘Aatmanirbhar Bharat’, and positions India as a trusted global hub for next-generation automotive manufacturing and technology leadership."