The Ministry of Heavy Industries has introduced amendments to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, aiming to bolster domestic manufacturing of electric vehicle (EV) components. Effective May 1, 2025, these changes enforce stricter local production requirements for critical EV components, including EV batteries, electric motors, and EV chargers.
Key Amendments in Component Manufacturing
The revised Phased Manufacturing Programme (PMP) now mandates that traction battery packs be entirely manufactured within India. This includes the assembly of cell-to-cell connections, bus bar fitments, wiring, and integration of battery management systems, effectively prohibiting the import of pre-assembled modules. Additionally, components such as Vehicle Control Units (VCUs), DC-DC converters, and motor controllers must undergo in-house assembly, encompassing semiconductors, wiring, and firmware integration.
Impact on Electric Two-Wheelers and Three-Wheelers
For electric two-wheelers (L1 & L2) and three-wheelers (L5, e-rickshaws, and e-carts), the amendments stipulate that all critical components, including traction battery packs and VCUs, be produced domestically. This move aims to reduce reliance on imports and strengthen the local supply chain, aligning with the government’s vision for a self-reliant EV industry.
Transition Period for Electric Buses
Electric buses are granted a transition period of six to twelve months to comply with the new manufacturing norms. This timeframe is provided to allow manufacturers to adjust their production processes and meet the domestic sourcing requirements for essential components.
Strategic Shift Towards Domestic Manufacturing
These amendments reflect a strategic shift towards enhancing India’s capabilities in EV manufacturing. By enforcing stringent local production norms, the government aims to attract investment, create employment opportunities, and establish India as a global hub for electric mobility. This move is expected to stimulate technological advancements and foster innovation within the domestic EV sector.
