India Accelerates Towards a Self-Reliant EV Future!
The Indian government has taken another significant step toward bolstering the country’s electric vehicle (EV) ecosystem. The Ministry of Heavy Industries has amended the PM E-DRIVE Scheme (S.O. 1078(E), March 3, 2025), as published in the Gazette of India on March 4, 2025. This policy update strengthens the Phased Manufacturing Programme (PMP) by mandating domestic production of key EV components, ensuring India’s leadership in green mobility.
Key Amendments and Their Impact
The latest modifications to the PM E-DRIVE Scheme focus on reducing import dependency and enhancing local manufacturing capacity. The new directives include:
1. Mandatory Local Manufacturing for e2W and e3W Components
Starting May 1, 2025, manufacturers of electric two-wheelers (e2W) and electric three-wheelers (e3W) must produce crucial components domestically. This includes:
- Traction battery packs
- Battery Management Systems (BMS)
- Motors
The most significant change is the prohibition of battery module imports, forcing manufacturers to develop or source these components locally. This measure encourages innovation and investment in India’s battery production capabilities.
2. Localization for Electric Buses (e-Buses)
Within 6-12 months of the notification, additional components for electric buses must be manufactured domestically. These components include:
- Heating, Ventilation, and Air Conditioning (HVAC) systems
- Traction motors
- Battery Management Systems (BMS)
This mandate ensures that large-scale public transportation benefits from a robust, locally-driven supply chain, improving sustainability and employment opportunities.
3. No More CKD Imports
In a landmark decision, the government has prohibited Completely Knocked Down (CKD) imports for EV components. By eliminating CKD imports, India moves toward a self-reliant EV supply chain, aligning with the “Make in India” vision.
Driving Innovation, Jobs, and Sustainability
The updated PMP regulations are expected to have a multifaceted impact on India’s EV sector:
- Boosting Domestic Innovation: Indian manufacturers and startups will have the incentive to develop indigenous technology, leading to better cost-efficiency and performance in EVs.
- Job Creation: With increased local production, the demand for skilled workers in battery technology, electronics, and manufacturing will surge.
- Environmental Benefits: Reduced imports mean lower carbon footprints in transportation and manufacturing processes, promoting a cleaner and greener future.
Conclusion
The PM E-DRIVE Scheme’s latest amendments mark a crucial milestone in India’s journey towards a self-sufficient and globally competitive EV industry. By localizing key components and curbing import dependency, the policy fosters an ecosystem that benefits manufacturers, consumers, and the environment alike. With these bold steps, India is accelerating towards a sustainable and innovation-driven future in electric mobility.
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