India's EV Manufacturing Incentive Plan Stalls as No Automakers Apply

India's "Scheme for Promotion of Manufacturing of Electric Passenger Vehicles" (SPMEPC), launched by the government last year, has stalled. According to officials, not a single automaker has submitted an application to avail of the import duty incentives, and the online application portal for the scheme has already been shut down. The program required companies to invest at least ₹415 billion in establishing manufacturing facilities and achieve 25% local content within three years and 50% within five years, while also meeting high thresholds such as having global annual revenues exceeding ₹1 trillion. Although international automakers like Tesla, Hyundai, and Volkswagen had previously expressed interest, none have formally applied. Tesla ultimately opted to enter the Indian market through fully built-unit imports without committing to local production. Analysts point to unclear policy incentives, low EV penetration of just 4%, inadequate charging infrastructure, and strong consumer preference for small cars as key reasons why automakers remain hesitant to make large-scale investments.