The Ministry of Heavy Industries has announced amendments to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, aimed at promoting domestic manufacturing of electric vehicle (EV) components in India. These amendments, published on March 3, 2025, focus on the Phased Manufacturing Programme (PMP) and outline specific requirements for different EV categories, including two-wheelers, three-wheelers, and electric buses.
Under the revised PMP guidelines, key EV components such as traction battery packs, battery management systems, DC-DC converters, vehicle control units, and traction motors must be manufactured domestically. The government has imposed strict regulations prohibiting the import of battery modules and other critical components, ensuring that these parts are produced within India. These new requirements will take effect from May 1, 2025, for electric two-wheelers and three-wheelers, and within six to twelve months for electric buses.
For electric two-wheelers (L1 & L2) and electric three-wheelers (L5, e-rickshaws, and e-carts), the amendments mandate that traction battery packs be manufactured locally with complete assembly, including cell-to-cell connections, bus bar fitment, wiring, and battery management system integration. Similarly, the vehicle control unit (VCU), on-board chargers, and instrument clusters must also be produced domestically, including assembly of electronic components, wiring, software integration, and heat-sink fitments.
In the case of electric buses (M2/M3 category), the amendments require that key components such as heating, ventilation, and air conditioning (HVAC) systems, electric compressors for brakes, charging inlets, and traction battery packs be produced within the country. The guidelines also specify that PMP verification for integrated units, such as DC-DC converters combined with on-board chargers and motor controllers, must be carried out separately for each component.
The notification further states that all other EV components must also be locally manufactured, and independent testing agencies will be responsible for assessing compliance. Additionally, the definition of “manufacture” will be in accordance with the Central Goods and Services Tax (CGST) Act, 2017, to maintain regulatory consistency. The amendments also prohibit the import of completely knocked-down (CKD) components from a single supplier, reinforcing the push for self-reliance in EV manufacturing.
The government has also announced that separate notifications will be issued for phased manufacturing requirements of emerging EV categories, including e-ambulances and e-trucks. These changes reflect India’s commitment to strengthening its EV ecosystem by encouraging domestic production and reducing dependence on imports. By mandating local manufacturing, the revised PMP is expected to boost investment in India’s EV sector, create jobs, and enhance the country’s position as a global player in clean transportation technology.
