Ministry Of Heavy Industries Strengthens EV Manufacturing With New Amendments To PM E-DRIVE Scheme

Posted On - 10 April, 2025 • By - King Stubb & Kasiva

Introduction

The Ministry of Heavy Industries (MHI) implemented major changes to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme to boost Indian domestic EV manufacturing.  A Phased Manufacturing Programme (PMP) for essential EV components received its implementation framework through modifications published on March 4, 2025 in the Official Gazette. These modifications help India achieve its goals of reducing foreign dependence and national independence through Make in India and accelerating the transition to sustainable transportation.

Explanation (Key Points)

  1. Phased Manufacturing Requirements for Key Components
    • The domestic manufacturing requirements for traction battery packs include procedures to connect cells together with bus bars and sensors and to integrate Battery Management Systems (BMS). The import of battery modules remains completely banned.
    • The Battery Management System (BMS) requires domestic assembly of electronic components on PCBs together with wiring and software integration. The import of BMS systems for e-buses remains possible during the first year following notification approval.
    • Local manufacturing of DC-DC Converters and Vehicle Control Units requires PCB assembly and heat-sink fitment and firmware flashing to take place within the country.
    • The production of traction motor components including coil winding and magnet fitment and rotor/stator assembly must happen within the domestic territory.
  2. Vehicle Category-Specific Timelines
    • e2W (L1/L2) & e3W (L5/E-Rickshaw/E-Cart): PMP requirements take effect from May 1, 2025.
    • e-Buses (M2/M3):
      • 6-month deadline: Components like HVAC systems, charging inlets (CCS2), and traction motors must be locally manufactured.
      • 12-month deadline: Stricter rules for BMS and DC-DC converters, requiring full domestic assembly of PCBs and software integration.
  3. Stringent Import Restrictions
    • The policy prohibits PMP component manufacturers from importing complete knockdown (CKD) products from single suppliers.
    • The verification of domestic manufacturing requirements must happen individually for each component within integrated units such as 3-in-1 chargers.
  4. Compliance and Definitions
    • Testing Agencies: Mandated to issue guidelines for assessing domestic manufacturing standards.
    • “Manufacture” Definition: Aligns with the CGST Act 2017, emphasizing end-to-end production within India.
  5. Future Expansion
    • PMP frameworks for emerging categories like e-ambulances and e-trucks will be notified separately, indicating a broader scope for the scheme.

Conclusion

The PM E-DRIVE Scheme amendments represent a transformative step forward in creating India into a worldwide EV manufacturing center. The policy supports local critical component production to decrease import dependency while simultaneously promoting local innovation and supply chain sustainability and job formation. The environmental and economic objectives under Atmanirbhar Bharat and India’s climate commitments support these measures to position EV technology as the foundation for lasting sustainable industrial growth. Industry stakeholders together with government entities need to collaborate for seamless implementation so the automakers can achieve long-term success across these specified timelines.