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Automotive & EV

Recent changes: automotive and EV

What changed since 2025, by date: the GST cut on vehicles, the India–EU FTA, Budget 2026-27 customs changes, the land-border easing, the India–UK CETA and the close of magnet scheme bidding.

6 changesDated changes listed in the brochure, Sep 2025 to Aug 2026
Facts as of 1 October 20266 sources citedHow we keep this current

What changed since 2025

DateChangeEffectSource
22 Sep 2025GST cut on vehiclesSmall cars, motorcycles up to 350cc and three-wheelers moved to 18% from 28%; auto parts unified at 18%. EVs pay 5%.PIB, 56th GST Council, Sep 2025
27 Jan 2026India–EU FTA agreedDuty on EU cars to fall from 110% to 10% for 250,000 vehicles a year; EV cuts start after five years. Not yet in force.Autocar India, 27 Jan 2026
2 Feb 2026Budget customs changesCapital-goods exemption for lithium-ion cell plants extended to storage cells; lithium-ion cell exemptions run to 31 March 2028.Budget Memorandum 2026-27
2 May 2026Land-border rule easedPress Note 2 (2026) took legal effect: up to 10% non-controlling land-border ownership is automatic, with prior reporting.DPIIT Press Note 2 (2026), 15 Mar 2026
15 Jul 2026India–UK CETA in forceIn-quota duty on UK cars starts at 30–50% and falls to 10% by year five; India-built EVs and hybrids gain duty-free UK access within quota from year six.Business Standard, Jul 2026
12 Aug 2026Magnet scheme bids closed20 bids received for the ₹7,280 crore REPM scheme; technical bids were opened on 13 August 2026.Fiinews, 15 Aug 2026

Other dated changes in the brochure

These appear on other pages of the brochure rather than in its timeline:

DateChangeEffectSource
6 Jan 2025End-of-Life Vehicles Rules 2025 notifiedProducers carry mandatory scrapping targets for vehicles they put on the Indian market, including self-use.MoEFCC, S.O. 98(E); PIB
1 Jul 2025Employment Linked Incentive and RDI Scheme approvedELI (₹99,446 crore) for jobs created 1 August 2025 to 31 July 2027; RDI Scheme with a ₹1 lakh crore corpus.PIB, 1 Jul 2025
26 Sep 2025MHI charging guidelinesGuidelines for PM E-DRIVE support for public EV charging stations.Lok Sabha reply (MHI)
1 Oct 2025IEM moved to NSWSIEM Part-A acknowledgement, Part-B filing and amendments available only on the National Single Window System.PIB, 1 Oct 2025
Oct 2025SPMEPCI window closedNo applications received; guidelines allowed reopening only until 15 March 2026.PIB, SPMEPCI guidelines, Jun 2025
4 May 2026DPIIT SOP for foreign investment proposals60-day decision target for land-border stakes up to 49% in listed sectors, including advanced battery components and magnets.DPIIT SOP, 4 May 2026
Aug 2026PM E-DRIVE extendedScheme runs to 31 March 2028, with claims by 31 December 2027.Business Standard, Aug 2026
30 Sep 2026RoDTEP continuedRoDTEP extended to 31 December 2026.DGFT Notification 41/2026-27 (secondary summary)

Note: For changes after 1 October 2026, see updates and the incentive tracker.

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