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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European automotive major Stellantis India has acquired the remaining equity stake held by Hindustan Motor Finance Corporation, a CK Birla Group company, in Stellantis Automobiles India. The transaction gives Stellantis complete ownership of the entity and its manufacturing facility located in Thiruvallur, Tamil Nadu.

The acquisition was funded through foreign direct investment and consolidates the manufacturing partnership established between Stellantis and the CK Birla Group in 2017.

The vehicle assembly at the Thiruvallur site began in 2021 and the plant currently produces the Citroen C3, e-C3, C3 Aircross and Basalt models. The company claims a localisation level of over 95 percent in its range.

Stellantis has allocated more than EUR 1 billion (approximately INR 110 billion) toward its Indian operations, covering manufacturing, engineering, supplier development and exports.

The automaker plans to increase annual production at the Thiruvallur facility from 16,000 units in 2026 to more than 43,000 units by 2028. The expansion is projected to increase direct site employment from 610 workers in 2026 to more than double that figure by 2028, alongside additional job creation in local supplier and logistics operations. Vehicles assembled at the plant are distributed domestically and exported to eight international markets across four continents.

Shailesh Hazela, CEO and Managing Director, Stellantis India, said, "India remains a key pillar of Stellantis' growth strategy. Having invested close to INR 110 billion in the country to build a strong manufacturing, engineering and export ecosystem, we continue to see significant opportunities ahead. This milestone will enable greater integration and enhance our ability to respond more quickly to customer and market needs."

"As we look ahead, we are committed to driving growth through new product investments, expanded manufacturing capacity, stronger export competitiveness and deeper localisation. India is playing an increasingly important role within Stellantis' global network, and we see significant potential to further scale our operations and contribution to the country's industrial growth," Hazela added.

The buyout removes the joint venture structure, establishing direct operational control for Stellantis to align Indian manufacturing capacity and export distribution with its central corporate operations.

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German automotive luxury brand Audi has started series production of the all-electric A2 e-tron at its main plant in Ingolstadt, Germany.

Interestingly, the company claims that the development timeline for the A2 e-tron was reduced by 21 months compared to previous vehicle projects through streamlined pre-series evaluation and coordination processes. The EV manufacturing process incorporates structural changes to lower operational complexity.

Audi implemented the string-of-pearls production sequence at Ingolstadt, fixing customer order sequences six days prior to assembly. This system allows component suppliers to deliver pre-sorted parts directly to the assembly line, eliminating regional storage and component sequencing areas.

The body of the A2 e-tron is assembled on shared line infrastructure alongside the Audi A3, utilising more than 1,200 reallocated components and 250 repurposed welding robots. Automated systems include camera-guided bin-picking robots for small sheet-metal parts and fully automated wheel installation stations replacing semi-automated bolting in chassis preassembly.

On the digital infrastructure side, the plant runs the Edge Cloud 4 Production platform, which centralises the control units for vehicle commissioning and operator guidance systems, replacing over 450 industrial PCs in the assembly area.

The facility also uses artificial intelligence assistants, including supply chain and maintenance chatbots, to assist line personnel with fault diagnostics and documentation retrieval.

Gernot Dollner, CEO, Audi AG, said. "The Audi A2 e-tron represents the next step in our renewal. It shows how we consistently think from the market backward, because different regions need different answers. The A2 e-tron was developed for Europe and is manufactured in Ingolstadt. It is the most efficient Audi we have ever built, and it makes electric mobility suitable for everyday use. At the same time, it shows how we are implementing our transformation in concrete terms: developing faster, producing more efficiently, and thereby strengthening industrial value creation and competitiveness in Germany."

Jorg Schlagbauer, Chairman, Audi General Works Council, said, "The start of production of the A2 e-tron in Ingolstadt is a strong signal for our site and its future. We are particularly proud of this as the works council, because together with the workforce we have repeatedly fought with great determination since 2019 for Audi to develop an entry-level electric model and build it in Ingolstadt. The project stands for technological expertise, industrial value creation, and secure prospects for our employees. Above all, however, the successful production launch is the result of the tremendous commitment and skill of our colleagues. Once again, this shows: at Audi, Vorsprung durch Technik is not just announced, it is achieved."

Gerd Walker, Board Member for Production and Logistics, Audi, said, "The A2 e-tron again demonstrates that it is possible to build cars profitably in Germany. Particularly important in this regard are AI assistants developed jointly by our Neckarsulm and Ingolstadt sites, our highly flexible production facilities, and, above all, the expertise of our employees. The model demonstrates the transformation of Audi production: less complex, even more efficient, and with a high degree of digitalisation and automation."

Siegfried Schmidtner, Plant Manager at Audi Ingolstadt, said, "The start of production of the Audi A2 e-tron is the result of extensive teamwork at the Ingolstadt plant. Drawing on their wealth of experience from numerous product launches, the team has laid the groundwork for a successful ramp-up of the model and further optimised our processes. Production of the new model strengthens core capabilities at our headquarters."

The site prepared its workforce for the launch through a multi-stage qualification program combining traditional assembly line instruction with virtual reality training modules.

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LICO Materials and Epsilon Advanced Materials have established a supply agreement to recover graphite from end-of-life lithium-ion batteries and cell manufacturing scrap for use as secondary feedstock in battery anode production.

Under the partnership, LICO Materials will process battery waste and manufacturing scrap using its mineral recovery technology to isolate graphite. The material will be supplied to Epsilon Advanced Materials for qualification and integration into its synthetic, natural, and blended graphite anode production platforms. Product samples from the recovered feedstock will be distributed for customer testing by the end of 2026. Graphite constitutes 20 to 30 percent of a lithium-ion battery's weight.

At present, China controls over 90 percent of global graphite refining and anode material production, with International Energy Agency projections indicating China will supply 80 percent of battery-grade graphite through 2035. India's Ministry of Heavy Industries projects domestic lithium-ion battery demand to reach 210 gigawatt-hours by 2030, requiring 200,000 to 230,000 tonnes of graphite anode material annually.

Gaurav Dolwani, CEO and Founder, LICO Materials, said, "Graphite is a critical material for the battery industry, yet its supply chain remains highly concentrated in China. Recovered graphite gives us an opportunity to retain material that is already within the battery ecosystem and return it to productive use. Supplying this recovered graphite to Epsilon Advanced Materials marks a breakthrough in our journey beyond battery recycling and brings us closer to closing the graphite loop."

Vikram Handa, MD, Epsilon Advanced Materials, said, "As global battery manufacturing expands, diversifying sources of graphite has become increasingly important. Recovered graphite provides an opportunity to complement conventional feedstocks while retaining valuable material within the battery ecosystem. Our work with LICO creates a pathway to bring recovered graphite back into advanced anode material production and strengthens the circularity of the battery materials value chain."

The agreement establishes domestic secondary feedstock sourcing for battery anode production, reducing reliance on primary graphite imports as Indian battery cell manufacturing expands.

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Bengaluru-based electric vehicle maker Ultraviolette Automotive has announced plans to establish a new manufacturing facility – the BIGGA Factory – in Hosur, Tamil Nadu. The plant will manufacture the Tesseract electric scooter and support the company's future product portfolio across sports, crossover, cruiser and street motorcycle segments.

The facility, located at the SIPCOT Industrial Park in Shoolagiri, will feature an initial production capacity of 250,000 units per year, which can be scaled up to 500,000 vehicles annually.

The site will complement Ultraviolette's existing plant in Bengaluru, Karnataka. The project is expected to generate approximately 2,000 jobs during its first phase.

The manufacturing setup will integrate Industry 4.0 systems, a Manufacturing Execution System for real-time tracking, collaborative robots for welding and assembly and vision-based inspection tools. The facility will also include an on-site test track to evaluate completed vehicles prior to delivery.

Narayan Subramaniam, Co-Founder and CEO, Ultraviolette Automotive, said, "We are at an inflection point in Ultraviolette's journey. Over the last few years, we have built our foundation around technology, performance and product innovation; the next phase is about building the scale to take that foundation much further. The BIGGA Factory is a significant step in that direction, giving us the manufacturing capacity and infrastructure to scale Tesseract and our future products, while creating the ability to serve a much larger customer base in India and international markets. Our current facility in Bengaluru, Karnataka will continue its regular operations alongside the BIGGA Factory, strengthening our long-term manufacturing and technology footprint in India."

Niraj Rajmohan, Co-Founder and CTO, Ultraviolette Automotive, said, "Hosur is a key manufacturing hub with a well-established automotive ecosystem, significant supply-chain advantages and close proximity to Ultraviolette's R&D operations and existing supplier network. These strategic advantages, combined with the scale, precision and manufacturing agility of the BIGGA Factory, will enable us to deliver the Tesseract and our future products to customers in India and international markets while maintaining the highest standards of quality and performance. The BIGGA Factory will further strengthen our ability to innovate and contribute to India's emergence as a global hub for electric-vehicle technology and manufacturing."

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