The Ministry of Heavy Industries (MHI) has mandated a 100 per cent domestic content requirement (DCR) for 18 electric vehicle (EV) components. This has been mandated across two-wheelers, three-wheelers, and e-buses to qualify for subsidies under the PM E-Drive programme. The phased manufacturing programme (PMP) eligibility criteria have been amended to ensure that original equipment manufacturers produce these components locally. The PM E-Drive initiative, launched with an outlay of Rs 109 billion, aims to provide demand incentives, deploy EVs, and develop charging infrastructure. Testing agencies will issue separate guidelines for assessing domestic manufacturing of EV components. Furthermore, the import of battery modules, PMP components, and other EV components in complete knockdown form from a single supplier has been prohibited. PMP verification will be conducted for each component within an integrated unit.
Furthermore, the MHI has extended the DCR for multiple two-wheeler and three-wheeler components until May 1, 2025. The listed components include the traction battery pack, battery management system, DC-DC converter, vehicle control unit, onboard charger or external portable charger, traction motor, traction motor controller including the inverter, and instrument cluster. Additionally, the cost of external chargers for two and three-wheelers must be included in the vehicle’s ex-factory price. For e-buses, compliance deadlines have been revised to six months from the amendment issue date for PMP components. This includes heating, ventilation, and air conditioning systems, electric compressors for brakes, charging inlets with CCS2 (a combined charging system that allows charging from AC and DC power), traction battery packs, DC-DC converters, vehicle control units, traction motors, and instrument clusters.
The amendment mandates domestic manufacturing of the traction motor controller, including the inverter, requiring the integration of assembled printed circuit boards. Compliance deadlines for manufacturing the battery management system and traction motor controller, along with the inverter, have been extended to 12 months from the amendment date. The extension also applies to assembling electronic components, semiconductors, and connectors on the printed circuit board.
