Parliament Question: Scheme to Promote Manufacturing of Electric Passenger Cars

GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 2686 ANSWERED ON 04.08.2026 SCHEME TO PROMOTE MANUFACTURING OF ELECTRIC PASSENGER CARS

2686. SHRI P C MOHAN:

Will the Minister of HEAVY INDUSTRIES be pleased to state:

(a) whether any company approved or applying under the Scheme to Promote Manufacturing of Electric Passenger Cars in India has proposed to set up or expand manufacturing facilities in Karnataka, including Bengaluru and if so, the details thereof including investment committed;

(b) the details of domestic value addition and technology transfer commitments applicable to any such facility proposed in Karnataka, and the timeline for achieving the prescribed localisation levels;

(c) the details of manufacturing capacity and employment generation expected to be created in Karnataka under the Scheme; and

(d) the role envisaged for the State Government of Karnataka in facilitating land, infrastructure and other support for such investment under the Scheme's implementation framework? ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a) to (c): Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) was notified on 15.03.2024 to attract investments from global electric passenger car manufacturers and promote India as a manufacturing destination for electric passenger cars. To avail benefit under SPMEPCI, approved applicants have to setup manufacturing facilities in India with a minimum investment of Rs. 4,150 cr, for manufacturing of e-4W and made operational within a period of 3 years from the date of issuance of approval letter by MHI and achieve minimum Domestic Value Addition (DVA) of 25% within 3 year & 50% within 5 year.

Application window for SPMEPCI was open for 120 days till 21.10.2025, however, no applications were received.

(d): For implementation of SPMEPCI, detailed guidelines supplementary to the provisions specified in SPMEPCI notification dated 15.03.2024 were issued on 02.06.2025 and State Government has no role w.r.t duty foregone benefit under SPMEPCI. However, State Governments can facilitate setting up of manufacturing facilities along with other initiatives for ease of doing business to attract foreign investment.

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