Centre Clarifies EV Manufacturing Scheme; Says OEM Non-Participation Linked to India–EU FTA Uncertainty
The Centre has clarified on the status of applications under the Scheme to Promote Manufacturing of Electric Passenger Cars (SPMEPC) that non-participation of Automobile Original Equipment Manufacturers (OEMs) was contingent on finalization of India–EU FTA negotiations. The Centre referred to a stakeholder meeting with automobile OEMs to state that no applications before the...
The Centre has clarified on the status of applications under the Scheme to Promote Manufacturing of Electric Passenger Cars (SPMEPC) that non-participation of Automobile Original Equipment Manufacturers (OEMs) was contingent on finalization of India–EU FTA negotiations.
The Centre referred to a stakeholder meeting with automobile OEMs to state that no applications before the deadline of October 21 was attributable to FTA uncertainty, supply chain restrictions, and high investment thresholds. The Centre also enlisted feedback from stakeholder consultation held with the OEMs for discussing the way forward and industry queries.
To encourage participation in the Scheme, it was also highlighted that Ministry of Heavy Industries conducted extensive stakeholder outreach including consultations during scheme formulation, circulated notices to embassies of global auto OEMs, engagement with Invest India, MEA, Department of Commerce, and State/UT governments, awareness campaigns via investment facilitation channels, applications to relevant embassies (of the countries where headquarters of global automobile OEMs are located), engagement of Invest India, Ministry of External Affairs, Department of Commerce and State/UT Governments.
On the proposed duty concessions (15%) for EV imports in exchange for local manufacturing investment of Rs. 4,150 crore are sufficient to attract manufacturers, the Centre stated that it has engaged stakeholders but currently has no plans to revise concessions or reopen applications.