India’s New EV Policy: Opportunities and Challenges for Automakers

India’s New EV Policy aims to transform the country’s electric vehicle sector. Officially titled India EV Policy 2025, the policy—also known as the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI)—is designed to attract global automakers while encouraging domestic production. A major highlight of India’s New EV Policy is the reduction of import duties on premium EVs to 15%, down from the previous 70–100%. This move is expected to make premium EVs more affordable for Indian buyers.

Automakers must meet specific conditions to qualify. They need to invest ₹4,150 crore (about $500 million) in local manufacturing within three years. Additionally, they must achieve domestic value addition (DVA) targets of 25% by the third year and 50% by the fifth year.