Heavy Industry Ministry Rolls Out Scheme To Promote EV Manufacturing In India

Tesla

The Ministry of Heavy Industries (MHI) has announced a new initiative to promote green mobility in the country under the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India’ (SPMECI).

The initiative aims to focus on encouraging the manufacturing of electric four-wheelers in the country. The scheme eventually looks to establish India as a premier global EV-manufacturing hub and attract investments from global electric vehicle companies, along with generating employment.

The Ministry of Heavy Industry has opened the application portal for a period of around 3 months starting from 24 June 2025 till 6pm on 21st October 2025.

HD Kumaraswamy, Union Minister for Heavy Industries and Steel of India, said, “Guided by the visionary leadership of Prime Minister Narendra Modi, this initiative marks a defining moment in India’s journey towards clean, self-reliant and future-ready mobility. The launch of this portal under the SPMEPCI scheme opens new avenues for global electric vehicle manufacturers to invest in India’s rapidly evolving automotive landscape. This scheme not only supports our national commitment to achieving Net Zero by 2070, but also reinforces our resolve to build a sustainable, innovation-driven economy.”

As per the guidelines, all approved applicants will need to invest a minimum of INR 41.5 billion to establish long-term manufacturing footprints in India. Global OEMs who invest in the country will be able to import electric passenger vehicles as Completely Built Units (CBUs) with a minimum CIF value of USD 35,000 at reduced customs duty of 15 percent for a period of five years from the Application Approval Date.

The Ministry has announced calibrated customs duty concessions and clearly defined Domestic Value Addition (DVA) milestones to strike a balance between the introduction of advanced EV technologies and the use of indigenous capabilities. Through domestic value addition targets, the scheme aims to fast track global and domestic companies towards becoming active partners in the country’s green mobility revolution.

SPMECI had been notified by a notification given on 15 March 2024.

Omega Seiki Mobility’s New $25 Million Vehicle Assembly Facility To Come Up In Dubai’s Jafza Region

OSM - Jafza

Delhi NCR-headquartered electric vehicle maker Omega Seiki Mobility (OSM) has announced its first international electric vehicle assembly plant in Jafza, Dubai, which is set to be operational by the end of 2025.

The company said it will invest USD 25 million over the next five years to accelerate its global expansion and meet rising demand for low-emission transport in the region.

The new facility, spread across 42,000 sqft, is claimed to be the first EV plant in Jafza region, which will assemble two-wheelers and three-wheelers. It will also support the storage and distribution of auto components and spare parts for the company.  

OSM aims to leverage the strategic location to serve export markets across the Middle East and Africa region, along with creating 100 jobs in its initial phase.  

Abdulla Al Hashmi, COO, Parks & Zones, DP World GCC, said, “More manufacturers are turning to Jafza to tap high-growth markets across the Middle East, Africa and beyond. With the MENA EV market projected to reach USD 14.5 billion by 2029, driven by supporting government policies, rising demand and expanding infrastructure, this facility brings innovative mobility solutions closer to the region and underlines Dubai’s role as a global hub for the automotive sector.”

Uday Narang, Founder and Chairman, Omega Seiki Mobility, said, “This launch is a proud moment for us and fitting that it comes on Indian Independence Day. Jafza gives us unmatched connectivity to more than 2 billion consumers and a business environment that enables speed, scale and sustainability. Through Dubai, we aim to make clean mobility accessible and commercially viable for partners across the Middle East and Africa.”

Furthermore, the company also is mulling to introduce CNG models for select African region.

Mercedes-Benz Marks 600,000th G-Class With Electric Model

Mercedes-Benz G Wagon

German luxury carmaker Mercedes-Benz has attained another milestone by rolling out the 600,000th Mercedes-Benz G-Class from Graz, Austria. The milestone vehicle is an electric G 580 with EQ Technology finished in obsidian black metallic.

Since its launch in 1979, the G-Class has become a symbol of off-road capability and design. The first G-Models combined off-road performance with on-road comfort and Mercedes' safety standards. In the past four decades, it has evolved while retaining key features such as all-wheel drive, differential locks, and a ladder frame. Design elements like the round headlights and exposed spare wheel remain.

In celebration of its heritage, a limited edition, the G-Class Edition Stronger Than The 1980s, was released last year. This model paid homage to the original W 460 series.

The brand's customisation service, Manufaktur, has seen increasing popularity. Since 2019, over 90 percent of G-Class customers choose at least one Manufaktur option, averaging three per vehicle. Customers can now select from up to 20,000 paint colours, including heritage shades.

VinFast Inaugurates Tamil Nadu EV Plant

VinFast India

Vietnamese automaker VinFast has officially inaugurated its electric vehicle assembly plant at SIPCOT Industrial Park in Thoothukudi, Tamil Nadu, India.

The new facility is VinFast’s third operational plant and the fifth project in its global manufacturing network. It is part of the company’s long-term bet on selling its vehicle in the world’s third-largest automobile market.

The factory is spread across 400 acres and is equipped with state-of-the-art production lines, featuring advanced automation and technologies. The complex houses multiple workshops, including body shop, paint shop, assembly shop, quality control centre, and a logistics hub. It also includes an auxiliary cluster for local contractors, which is expected to expand in the coming years.

The company expects to create around 3,500 jobs for local workers at full capacity, along with several thousand indirect jobs in the supply chain ecosystem. To start with, the company will assembly the VF 7 and VF 6 electric vehicles with a capacity of 50,000 units per annum, which can be scaled upto 150,000 units per annum to meet market demand.

VinFast states with the Tamil Nadu plant on stream, it moves closer to its 2025 sales target of 200,000 vehicles and its long-term production goal of 1 million vehicles per year by 2030.

Pham Sanh Chau, CEO, VinFast Asia, said, “The VinFast Tamil Nadu plant marks a strategic milestone in our long-term commitment to the Indian market. It establishes a strong foundation for sustainable growth and positions us to offer high-quality, competitively priced electric vehicles to Indian consumers. Looking ahead, the facility will expand its production capacity to meet rising demand. We aim to develop it into VinFast’s largest export hub for South Asia, the Middle East, and Africa. In fact, we've already secured initial orders from several countries across these regions. In close collaboration with the Tamil Nadu government, VinFast is working to transform the area into the 'EV capital of South Asia'—supporting both the dynamic domestic market and our broader regional ambitions.”

Going forward, VinFast aims to further promote localisation, technology transfer and also upskill its workforce.

China’s NIO Surpasses 800,000 Vehicle Production Milestone

NIO

Chinese electric vehicle manufacturer NIO has attained a new production milestone with the 800,000th unit – Onvo L90 – rolling out from its Factory One in Hefei on 24 July 2025.

Since the pre-order started on 10 July, the company shared that the L90 has received widespread interest and recognition from users and the market.

Built on NIO’s decade of investment in the charging and swapping infrastructure, the L90 redefines the family-oriented three-row electric SUV by tackling two major user pain points: charging anxiety and space anxiety.

The test drives for the L90 officially began on 23 July with nearly 600 test drive cars now available at over 400 ONVO stores and showrooms in 140 cities in China. The L90 is set to be officially launched on 31 July, with deliveries starting 1 August.