SPMEPCI scheme to attract foreign players to invest, bring EV portfolio to India: Mercedes-Benz India CEO

The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will attract new foreign auto manufacturers to invest and bring their electric vehicle portfolio to the country, believes Mercedes-Benz India CEO and Managing Director Santosh Iyer. The German automaker that has been leading the electric vehicle segment in the Indian luxury car market with a wide range of products has introduced two new sports cars in the country, the AMG GT 63 4MATIC and GT 63 PRO 4MATIC Coupe, priced at ₹3 crore (ex-showroom) and ₹3.65 crore (ex-showroom), respectively.

Speaking to PTI about the SPMEPCI, Iyer said that it is a great scheme and a great initiative by the Ministry of Heavy Industries (MHI). "I think it's a great scheme and a great initiative by the Ministry for Heavy Industries (MHI) to really come up with such a forward-looking scheme. But this scheme is primarily for new entrants who have not come into India," Iyer reportedly said.

Under the SPMEPCI, automakers will be permitted to import up to 8,000 electric vehicles in India at a reduced duty rate of 15 per cent compared to the current 70-100 per cent, provided they commit to investing ₹4,150 crore in the local EV manufacturing industry.

Speaking about Mercedes-Benz's investments in India, Iyer said that the company has invested ₹3,000 crore in the OEM's Chakan plant near Pune. “Today, we are already producing two car models locally at this plant, much before the announcement of the scheme," he further said, while also adding, “But I think this scheme will surely attract newer players, who are not yet in India, to invest and come with their electric cars."

Meanwhile, speaking about the ongoing rare earth magnet crisis, which has hit the panic button in the Indian industry and is fuelling concerns about a possible shutdown in the coming months due to the unavailability of the critical component, Iyer said that in today's time, disruptions happen due to geopolitical issues or supply chain issues, but the company's colleagues involved in the backend are able to manage it quite well. "As of now, we have no disruption in India because of any of these issues," Iyer asserted.

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