As you know, day by day, we see an increase in electric vehicles around us. Have you ever wondered how the number of these vehicles is increasing in the form of scooters, bikes, and buses? This is because the government of India has recently launched a new flagship initiative named the Electric Vehicle Manufacturing Incentive Scheme, which aims to help those who are manufacturing electric, eco-friendly vehicles by offering financial rewards as incentives and other interesting benefits to the companies and creating a vigorous ecosystem for the production of EVs.
Through the implementation of this scheme, the eco-friendly electric vehicles will become more affordable, and by increasing the number of productions, the vehicles will be available in stable quantities for the citizens of the country. The candidate who wants to avail the benefit and get more information just keeps going through this article. We’ll explain everything you need to know in this article.
What Is the Electric Vehicle Manufacturing Incentive Scheme?
Heavy Industries Minister HD Kumaraswamy, under the administration of the government of India, has recently announced the launch of a key program, the Electric Vehicle Manufacturing Incentive Scheme, on 2nd June 2025, which aims to give a helping hand to the electric vehicle manufacturing companies by granting them an incentive for the EVs production and uplift the status of the EV sector amongst the citizens of the country. This key initiative creates a favorable environment for the production of eco-friendly EVs and will prove to be a fascinating case for consumers of these.
The government, by the implementation of this scheme, wants to make India a green economy without air pollution by transforming India into a global center for the production of EVs. By this transition to electric automobility, this program will work against pollution in India. The government implemented the Electric Vehicle Manufacturing Incentive Scheme, also known as the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), and has allocated a budget of 4,150 crore rupees to provide incentives to the manufacturing companies of electric vehicles, making imported electric vehicles more affordable through lower customs duties.
The scheme not only motivates companies to manufacture electric vehicles but also encourages the population to use them as a local transport method and hence uplift the reduction of pollution, which spreads through heavy mobility vehicles.
Objectives of the Electric Vehicle Manufacturing Incentive Scheme
- The main objective of the Electric Vehicle Manufacturing Incentive Scheme is that, under this scheme, the government will provide subsidies or incentives to the manufacturing companies.
- The incentive is the money that companies make from sales over a period of 5 years.
- The encouraging objective of the scheme is to motivate companies to increase the manufacture of EVs and their spare parts under the “Make in India“ program. By providing the companies with manufacturing incentives.
- Encourage worldwide companies to invest in our electric vehicle manufacturing sector.
- Lower the cost of electric vehicles and make them more affordable for consumers.
- Create new job opportunities in the EV manufacturing industry.
- The other important objective of the scheme is to make India a green economy, having all the electric vehicles that do not produce pollution.
Read More- PMAY-G Beneficiary List 2025
Key Points of Electric Vehicle Manufacturing Incentive Scheme
| Name of the scheme | Electric Vehicle Manufacturing Incentive Scheme |
| Who launched | Government of India |
| Who Announced | Heavy vehicle Minister HD Kumaraswamy |
| Year | 2025 |
| beneficiaries | Manufacturers of the electric vehicles |
| Benefit | Incentive or subsidy to EV manufacturing companies |
| Government Budget | INR 25,938 crore |
| Application method | Online |
| Official website | https://spmepci.heavyindustries.gov.in/ |
Total Budget of Electric Vehicle Manufacturing Incentive Scheme
The government of India initiated the Electric Vehicle Manufacturing Incentive Scheme, which is the most crucial step taken by the government to help manufacturing companies build electric vehicles and their parts right here in India. The government has allocated a total budget of INR 25,938 crore. The government of India gives a financial incentive to companies according to how much they sell in that period of five years. Help the companies to upgrade their inputs and produce more components locally instead of importing the parts and vehicles.
Eligibility Criteria
To qualify for the scheme, the candidate must meet the following criteria:
- For big car companies under the Production Linked Incentive (PLI) auto scheme, the company must be a large, established company with high global revenue.
- At least half the parts of your vehicle must be made in India.
- You need to promise to invest a specific amount of money to expand your company.
- For global car companies, the criterion is that at least one-fourth of their vehicle must be made in India.
Documents Required
Documents required to apply for the Electric Vehicle Manufacturing Incentive Scheme areas follows:
- GST registration certificate
- Certificate of registration (proof of legal company)
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- PAN card of the company
- Civil Report
- Letter of authorisation
- import/export certificate (if required)
How To Apply Online For The Electric Vehicle Manufacturing Incentive Scheme
Here are some steps given below; after reading them, you will surely be able to apply online for the Electric Vehicle Manufacturing Incentive Scheme:
- After meeting the eligibility criteria, one has to visit the official website of the scheme: https://spmepci.heavyindustries.gov.in/
- After getting the homepage of the website, you must register your company and create a login ID and password.
- After registration, a new page will appear on your display with an application form; you have to fill it out carefully with the required details.
- After filing the application form, you have to attach all the required documents to the application form.
- After getting ready the application form, you have to pay a non-refundable application fee.
- After filling out the form and paying the fee, the company must double-check everything and click “Submit.” The government will then review the application, which can take a long time.
FAQs
What is the government-allocated budget of the Electric Vehicle Manufacturing Incentive Scheme?
The government has announced a budget of 25,938 crore rupees under the Electric Vehicle Manufacturing Incentive Scheme.
Who launched the Electric Vehicle Manufacturing Incentive Scheme?
The Government of India has launched the Electric Vehicle Manufacturing Incentive Scheme.