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 21^st 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.

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VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, is set to invest INR 5.44 billion towards production and final assembly of the Volvo Group’s globally proven 12-speed Automated Manual Transmission (AMT).

The company is establishing a new greenfield factory at Vikram Udyogpuri Integrated Industrial Township, near Ujjain, Madhya Pradesh. The new facility will have an initial capacity to produce 40,000 units per annum, with production and local content to be gradually ramped up. The engines will benefit Eicher Heavy Duty truck customers in India and Volvo Group in India, along with plans to export to select markets in Asia-Oceania region.

The development builds upon the 18-year-old alliance between the two companies, with VECV already manufacturing Volvo Group’s 5-litre and 8-litre (MDEP) engines in India since 2013.

The new AMT facility will have an initial capacity to produce up to 40,000 units p.a., with production and local content to be gradually ramped up in line with Volvo Group’s global processes and quality standards.

Sofia Frandberg, Chairperson, VE Commercial Vehicles and Senior Leader, Volvo Group, said, “This investment by VECV represents yet another win-win synergy with the Volvo Group and leverages the technical and industrial capabilities that have been built-up over the past 18 years. During this time, VECV has repeatedly demonstrated its leadership in the commercial vehicle market through timely introduction of future-ready solutions that address customer needs in the rapidly transforming industry.”

Siddhartha Lal, Chairman, Eicher Motors, said, “Since its inception in 2008, our VECV JV has progressively delivered joint programs of growing importance and technological complexity. The new investment to assemble and produce the Volvo Group AMT is built on the bedrock of this trust and technical capability. It marks another significant step towards our vision of becoming a leading CV player in India and other emerging markets by driving modernisation in commercial transportation.”

Jens Holtinger, Executive Vice-President Group Trucks Technology and Chief Technology Officer, Volvo Group, said, “This new manufacturing hub at VECV is an excellent example of how the Volvo Group has leveraged partnerships to make our manufacturing supply chain more efficient. It is also a testament to the amount of trust we put in the competence of VECV. Over the past 18 years, VECV has become a core part of Volvo Group supply chain for critical components and aggregates, and we now write a new chapter in our successful relationship.”

Vinod Aggarwal, MD & CEO, VE Commercial Vehicles, said, “As the Indian commercial vehicle industry moves towards higher capacity vehicles, Eicher truck customers and drivers will have access to Volvo Group’s globally leading AMT, which is proven to reduce driver fatigue and improve fuel economy, productivity and Uptime in demanding operations. The new AMT factory will be built to Volvo Group’s global standards and is very much aligned with the Government of India’s vision for Make in India. We thank the Government of Madhya Pradesh for their unstinting support.” 

Image for representational purpose only.

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Bengaluru-based electric two-wheeler maker Ather Energy has attained a new production milestone with the roll-out of its 500,000th unit – an Ather Rizta e-scooter – from its plant in Hosur, Tamil Nadu. The company shared that the Rizta e-scooter has become a growth driver for the brand since its launch last year.

Swapnil Jain, Co-Founder & CTO, Ather Energy, said, "Crossing 500,000 scooters is a major milestone for Ather. From our very first prototype to today, our journey has been about building not just vehicles, but a scalable, reliable and consistent manufacturing ecosystem. This achievement reflects years of focused engineering, rigorous testing, and meticulous attention to quality at every stage of production. It also highlights the dedication of teams across the company and the trust and support of our owner community, who have been with us throughout this journey."

Ather has built a portfolio of performance and family scooters. The Rizta, in a year since its launch, accounts for over one-third of total production volumes. Ather has recently expanded its presence in the Middle and North India, focusing on tier 2 and 3 cities, alongside metro markets.

Ather currently runs two manufacturing facilities in Hosur, Tamil Nadu – one for vehicle assembly and one for battery production. The Hosur plant has a capacity of 420,000 scooters a year. To meet demand, Ather is setting up its third plant, Factory 3.0, in Bidkin, AURIC, Chhatrapati Sambhajinagar, Maharashtra. The facility will be developed in two phases, integrating digital technologies. Once both phases are running, Factory 3.0 will increase Ather’s total installed capacity across all facilities to 1.42 million electric two-wheelers annually.

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Tata AutoComp Hendrickson Suspensions (THSL) has become the first commercial vehicle suspension manufacturer to be awarded the prestigious Deming Prize. 

The Deming Prize recognises companies that have achieved distinctive performance improvements through the application of TQM. For THSL, the award validates years of painstaking work in standardising processes, enhancing product reliability and ensuring customer delight.

Incepted in 2006, as a 50:50 Joint Venture between Tata AutoComp Systems and Hendrickson, THSL focusses on suspension solutions that could conquer the unique challenges of Indian roads and maintenance practices. The company didn't just import technology; it customised it.

The 8x2 Truck Revolution: THSL became a major enabler for the fuel-efficient and versatile 8x2 truck segment in India, largely due to its innovative Lift Axle Suspension system. They played a significant role in developing the robust 37-tonne truck segment.

Leveraging Hendrickson's deep global product knowledge and combining it with their own extensive experience of Indian operating conditions, THSL continually focused on quality and innovation across its product lines:

• Auxiliary suspensions (Lift Axle): Enabling flexibility and better load management in Pusher/Tag positions.
• Robust tandem solutions: Developing advanced bogie suspensions and rubber-metal suspension systems essential for medium and heavy-duty tippers and haulage tractors.
• Comfort on the move: Pioneering modern bus air suspension systems for city buses, coaches and luxury intercity travel.
• Comprehensive range: Offering air suspension systems for various truck and tractor applications, alongside traditional, durable parabolic springs.

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The Association of Indian Forging Industry (AIFI), the apex body for the forging sector, successfully concluded its National Annual Convention in Pune, bringing together industry leaders, policymakers and experts to strategise on the future of the Indian forging industry.

The landmark event focused on charting a clear growth roadmap, exploring opportunities amidst global supply chain disruptions and analysing the evolving outlook for both Electric Vehicles (EVs) and Internal Combustion Engines (ICE).

In his inaugural address, Yash Munot, President, AIFI, emphasised the industry’s need to balance the dual imperatives of sustainability and competitiveness. "India’s automotive and mobility sectors are undergoing unprecedented transformation. At AIFI, we firmly believe that collaboration across industry, academia and policymakers is the key to shaping a resilient future," he stated.

A core theme of the convention was the delicate balance between the EV transition and the continuing relevance of ICE technology in India.

Dr K C Vora of NAMTECH delivered a keynote on the ‘Future of EV & ICE in Indian Scenario,’ highlighting the critical role of EV adoption, supported by policies like FAME II, while stressing the need for continued optimisation of ICE platforms given India's diverse mobility ecosystem.

The second keynote by Prenayan Kaul of PwC focused on navigating global supply chain disruptions, urging forging companies to leverage technology-driven efficiencies and tap into new growth areas to counter headwinds like raw material volatility.

A major highlight of the convention was the signing of a Memorandum of Understanding (MoU) between AIFI and Hexagon. This strategic partnership aims to advance digitalisation and smart manufacturing capabilities within the forging sector, a move AIFI President Munot cited as a testament to the commitment to global competitiveness.

A dynamic panel discussion on ‘Current Industry Scenario - Trends, Opportunities & Challenges,’ moderated by S Muralishankar, further reinforced the importance of resilience, innovation and collaborative growth in tackling current industry trends and governmental policies.

The convention concluded with a reaffirmation of AIFI's mission to strengthen the sector’s role as a vital contributor to India’s economic growth, aligning actively with national priorities such as ‘Atmanirbhar Bharat’ and the transition towards sustainable mobility.

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