India's Electric Vehicle Boost: SPMEPCI's Role in Attracting New Players

The SPMEPCI is set to attract foreign investment into India by allowing automakers to import up to 8,000 EVs at reduced duties if they commit to local manufacturing. This strategic initiative aims to bolster India's electric vehicle market, encouraging international players to expand their portfolios in the country.

India has introduced the Scheme to Promote Manufacturing of Electric Passenger Cars (SPMEPCI), a strategic plan anticipated to draw foreign investors and expand the nation's electric vehicle market. By offering a reduced import duty on electric vehicles, the scheme aims to entice new international automotive players to establish a manufacturing foothold in India.

Mercedes-Benz India CEO Santosh Iyer praised the initiative, highlighting its potential to transform the country's EV landscape. Under this scheme, automakers are permitted to bring in up to 8,000 EVs at a reduced duty of 15%, significantly lower than the previous 70-100%, provided they invest Rs 4,150 crore in local manufacturing efforts.

Iyer also noted Mercedes-Benz's commitment to India's automotive sector with their long-standing investment in local production. The launch of new high-performance models further demonstrates the brand's dedication to India's growing community of automotive enthusiasts.

(With inputs from agencies.)