The Indian government has launched a dedicated platform under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), marking a new phase in its electric car policy and a renewed attempt to bring Tesla to Indian shores. Global electric vehicle (EV) manufacturers are encouraged to invest and establish local production facilities under the program, which was presented by Union Heavy Industries Minister HD Kumaraswamy.
At the launch, Kumaraswamy stated, “Tesla can also apply; we are still open to Tesla.” Formal communications would shortly be issued to the embassies of the United States, Germany, Vietnam, the United Kingdom, and Czechoslovakia, he said.
Elon Musk, the CEO of Tesla, has previously expressed a want for more concessions, but the American EV behemoth has only decided to import and sell cars in India through company-owned showrooms thus far. This hasn’t stopped the Indian government from trying to court Tesla for a bigger deal, though.
Due to continuous restrictions on investments from nations that share land borders with India, China’s BYD is still marginalized. However, a senior ministry official said that Vietnam’s VinFast, which has already started local production, could not be eligible under SPMEPCI unless it pulled in $500 million in new capital.
“They have already made their investment. “They are eligible for concessional import duties under the policy if they come up with a new investment of $500 million, even in the same location,” the official continued.
VinFast has previously stated that it hoped to qualify, pointing to large investments that had already been made.
At first, the policy only accepted international businesses establishing brand-new (greenfield) facilities. However, the restrictions were amended to permit brownfield investments—as long as they are clearly separated from existing production setups—after fierce pushback from Indian manufacturers such as Tata Motors, Mahindra & Mahindra, and Maruti Suzuki.
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It is anticipated that this action will draw in both foreign and domestic companies wishing to expand or diversify their activities in India.
