Government Mandates 100% Domestic Content for EV Components Under PM E-Drive
07 Mar 2025
3 Min Read
CW Team
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鈥檚 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鈥檚 EV Market Growth in 2024
India鈥檚 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鈥檚 push for localisation under PM E-Drive is expected to further accelerate domestic EV production and strengthen India鈥檚 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鈥檚 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鈥檚 EV Market Growth in 2024
India鈥檚 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鈥檚 push for localisation under PM E-Drive is expected to further accelerate domestic EV production and strengthen India鈥檚 position in the global EV market.
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