Government Mandates 100% Domestic Content for EV Components Under PM E-Drive

07 Mar 2025 CW Team

MHI has amended eligibility criteria for the Phased Manufacturing Program (PMP) under PM E-Drive, an initiative launched under the Faster Adoption & Manufacturing of Electric Vehicles in India-II (FAME-II) program. The move aims to boost local manufacturing of critical EV components by original equipment manufacturers (OEMs).

To qualify for subsidies, all 18 listed EV components must be produced domestically. The PM E-Drive was introduced with an outlay of Rs 109 billion (~$1.29 billion) to provide demand incentives, deploy EVs, and develop charging infrastructure for wider EV adoption.

Stricter Compliance Measures and Testing Guidelines Testing agencies will issue separate guidelines to assess domestic manufacturing compliance. Importing battery modules, PMP components, and other EV parts in complete knockdown (CKD) form from a single supplier is prohibited. In integrated units, PMP verification will be conducted individually for each PMP component.

DCR Implementation Timeline for Two & Three-Wheelers MHI has extended the mandatory DCR deadline for several two-wheeler and three-wheeler EV components to May 1, 2025. The required domestically manufactured components include:

? Traction battery pack ? Battery management system (BMS) ? DC-DC converter ? Vehicle control unit ? Onboard charger / External portable charger ? Traction motor ? Traction motor controller (including inverter) ? Instrument cluster

Additionally, the cost of the external charger must now be included in the vehicle’s ex-factory price.

Revised Compliance Timeline for E-Buses The compliance deadline for e-buses has been revised to six months from the amendment issue date for several PMP components, including: ? Heating, ventilation, and air conditioning (HVAC) system ? Electric compressor for brake system ? Charging inlet CCS2 (Combined Charging System for AC & DC charging) ? Traction battery pack ? DC-DC converter ? Vehicle control unit ? Traction motor ? Instrument cluster

The domestic manufacturing requirement for the traction motor controller (including inverter) now mandates an assembled printed circuit board (PCB) integration.

For battery management systems (BMS) and traction motor controllers, the compliance deadline has been extended to 12 months from the amendment date. This also applies to the inverter, which must be assembled with electronic components, semiconductors, and connectors on the PCB.

India’s EV Market Growth in 2024 India’s EV sales hit a record 1.95 million units in 2024, marking a 27% year-over-year (YoY) growth from the 1.53 million units sold in 2023. The government’s push for localisation under PM E-Drive is expected to further accelerate domestic EV production and strengthen India’s position in the global EV market.

The Ministry of Heavy Industries (MHI) has enforced a 100% domestic content requirement (DCR) for 18 key electric vehicle (EV) components across the two-wheeler, three-wheeler, and e-bus segments to qualify for subsidies under the PM E-Drive program. MHI has amended eligibility criteria for the Phased Manufacturing Program (PMP) under PM E-Drive, an initiative launched under the Faster Adoption & Manufacturing of Electric Vehicles in India-II (FAME-II) program. The move aims to boost local manufacturing of critical EV components by original equipment manufacturers (OEMs). To qualify for subsidies, all 18 listed EV components must be produced domestically. The PM E-Drive was introduced with an outlay of Rs 109 billion (~$1.29 billion) to provide demand incentives, deploy EVs, and develop charging infrastructure for wider EV adoption. Stricter Compliance Measures and Testing Guidelines Testing agencies will issue separate guidelines to assess domestic manufacturing compliance. Importing battery modules, PMP components, and other EV parts in complete knockdown (CKD) form from a single supplier is prohibited. In integrated units, PMP verification will be conducted individually for each PMP component. DCR Implementation Timeline for Two & Three-Wheelers MHI has extended the mandatory DCR deadline for several two-wheeler and three-wheeler EV components to May 1, 2025. The required domestically manufactured components include: ? Traction battery pack ? Battery management system (BMS) ? DC-DC converter ? Vehicle control unit ? Onboard charger / External portable charger ? Traction motor ? Traction motor controller (including inverter) ? Instrument cluster Additionally, the cost of the external charger must now be included in the vehicle’s ex-factory price. Revised Compliance Timeline for E-Buses The compliance deadline for e-buses has been revised to six months from the amendment issue date for several PMP components, including: ? Heating, ventilation, and air conditioning (HVAC) system ? Electric compressor for brake system ? Charging inlet CCS2 (Combined Charging System for AC & DC charging) ? Traction battery pack ? DC-DC converter ? Vehicle control unit ? Traction motor ? Instrument cluster The domestic manufacturing requirement for the traction motor controller (including inverter) now mandates an assembled printed circuit board (PCB) integration. For battery management systems (BMS) and traction motor controllers, the compliance deadline has been extended to 12 months from the amendment date. This also applies to the inverter, which must be assembled with electronic components, semiconductors, and connectors on the PCB. India’s EV Market Growth in 2024 India’s EV sales hit a record 1.95 million units in 2024, marking a 27% year-over-year (YoY) growth from the 1.53 million units sold in 2023. The government’s push for localisation under PM E-Drive is expected to further accelerate domestic EV production and strengthen India’s position in the global EV market.

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..