Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Government Strengthens Local EV Manufacturing Under Amended PM E-DRIVE Scheme

The Ministry of Heavy Industries has issued key amendments to the PM E-DRIVE Scheme, effective March 3, 2025, aimed at boosting domestic EV manufacturing, reducing imports, and promoting Phased Manufacturing Programs (PMP) for electric two-wheelers (e2W), three-wheelers (e3W), and e-buses.

Key Changes

• Mandatory Domestic Manufacturing of EV Components – Essential components like traction battery packs, battery management systems, traction motors, and onboard chargers must be locally produced. The rule applies to e2Ws and e3Ws from May 1, 2025, while e-buses have 6-12 months to comply.
• Ban on Import of Battery Modules – Import of battery modules will be prohibited for e2Ws and e3Ws from May 1, 2025, with a phased transition for e-buses to ensure complete localization within a year.
• Restrictions on CKD (Completely Knocked Down) Imports – EV makers cannot rely on a single supplier for CKD kits, promoting domestic value addition and reducing dependence on foreign manufacturers.
• Phased Implementation for Different EV Categories – Localization norms take effect from May 1, 2025, for e2Ws and e3Ws, while e-buses must comply within 6 to 12 months. Critical components like HVAC systems, electric compressors, and traction motors must be manufactured domestically.

The government will soon release separate PMP guidelines for e-ambulances, e-trucks, and other EV segments, ensuring a structured transition to self-reliant EV manufacturing. These amendments reinforce India’s push for an Aatmanirbhar Bharat in the EV sector while strengthening the supply chain for sustainable mobility solutions.