Overview

• Tesla has opted not to manufacture EVs under India’s SPMEPCI and will open two showrooms in Mumbai’s Bandra Kurla Complex while testing its Model 3 and Model Y.
• Under the scheme, approved manufacturers can import up to 8,000 fully built electric vehicles annually at a reduced 15% customs duty for five years.
• To qualify, companies must invest a minimum of Rs4,150 crore, begin domestic production within three years, and achieve local value-addition of 25% by year three and 50% by year five.
• Mercedes-Benz, Škoda Auto Volkswagen, Hyundai Motor and Kia Motors have already signaled interest in India’s EV manufacturing incentives.
• High baseline import duties, right-hand-drive conversion challenges and Tesla’s roughly 60% factory utilization make local production less appealing at present.