No takers yet for govt’s EV import scheme

Three months after the Center offered duty concessions on imported electric cars in exchange for commitments to local manufactures, no vehicle manufacturer has expressed interest with the aim of wooing Tesla, primarily.

“No one has come,” a senior government official said in response to a question how many auto players had created interest. The Ministry of Heavy Industries launched a portal on June 24 to accept applications under the scheme to promote the manufacture of electric passenger cars in India (SPMEPCI). The last day of applying for the scheme is October 21, 2025.

While the import policy was announced in March 2024, after a draft notification on the guidelines for its implementation, the final guidelines for this were reported in June 2025. Under the policy, companies will be allowed to import 8,000 electric for-wheeler units at a low import duty of 15% annually, which is currently an investment for an investment for ₹ 4,150, compared to 70–100%. It should also submit a bank guarantee of at least 4150 crore ($ 500 million) along with the application. The original equipment manufacturer (OEM) will have to get 25% DVA (domestic price add) within three years and 50% within five years.

Officials said the auto manufacturers were waiting for important foreign trade agreements such as the US and the European Union to end those who offered attractive concessions. He cited an example of FTA with the UK as an example, where import duties on UK-made vehicles, including electric and traditional cars, are cut from 100% to about 10%, but only for a limited number of vehicles under an annual quota. Only large engine premium vehicles (petrol above 3000 cc, diesel above 2500 cc), and luxury cars above £ 40,000 (including costs, insurance and goods), are eligible for these concessions; Mass-market models and low-priced vehicles are excluded.

Officials said a representative of Tesla attended the first meeting of stakeholders held last year after the draft guidelines were issued, “No communication has been done between the auto giant and the government.

Meanwhile, Tesla has opened a showroom in Mumbai and National Capital Region for fully manufactured units.

On the question whether the government would tweek for the plan to make it more attractive, the officials said that no demand was made from auto companies seeking changes in policy.

Responding to concerns from auto manufacturers at a high investment fee of ₹ 4,150 crore, the above quoted officer rejected them saying that the original equipment manufacturers would simply remove the costs spent on import duty for investments made for local manufacturing. However, the official stated that some players were worried about the amount of sales, which would be at a price of more than $ 35,000 for their cars.

TEPID reaction is despite the first indication of the automobile industry officials, expressing that Hyundai Motor India, Kia India, Volkswagen Group and Toyota may be keen on global OEM policy.

While the Vietnamese EV manufacturer set up an assembly plant in Roathukudi and promised an investment of $ 500 million, it does not qualify for the plan as in March was invested before last year’s draft notification.