Govt Needs more Local Content in Electric Vehicle Manufacturing

The Ministry of Heavy Industries is in talks with stakeholders about a phased manufacturing programme (PMP) that mandates increased localisation for electric vehicle (EV) manufacturers to be eligible for the planned Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-III) subsidy program.

In recent talks with stakeholders, the ministry proposed decreasing the components under PMP in FAME-III from 18 to 12. Items like power and control wiring harnesses, connectors, miniature circuit breakers, electric safety devices, lighting, and body panels that were not mentioned earlier must now be produced within the country.

Additionally, the ministry restated that all remaining portions, elements, and sub-components of electric vehicles must be produced and put together within the country. Automobile companies have been requested to give their input on the planned modifications.

There are ongoing discussions regarding a defined process for localizing components within the PMP. In the case of electric two-wheelers, three-wheelers, and electric rickshaws, only the cell and related thermal and battery management systems are allowed to be brought in from outside.

Battery modules or full battery packs that are completely disassembled will not be allowed. Every component needed to build the battery pack must be sourced or made within the country.

Only the semiconductor device and electronics can be brought in for onboard chargers. All remaining parts, including the construction of the end product (like printed circuit board (PCB) production and electronic soldering), must be completed within the country.