Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC)

In a significant move aimed at revolutionizing the electric vehicle (EV) landscape in India, Ministry of Heavy Industries (MHI) has notified the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC) on 15/03/2024. The Department of Revenue, Ministry of Finance, also issued notifications on 15/03/2024, outlining reduced import duties in alignment with the Scheme.

• The approved applicants will setup manufacturing facilities in India with a minimum investment of Rs. 4,150 cr (USD 500 million), for manufacturing of e-4W.
• The manufacturing facility shall be made operational within a period of 3 years from the date of issuance of approval letter by Ministry of Heavy Industries (MHI) and achieve minimum Domestic Value Addition (DVA) of 25% within 3 years and DVA 50% within 5 years from the date of issuance of approval letter by MHI.