The Indian government is set to introduce a more rigorous phased manufacturing programme (PMP) aimed at increasing the domestic production of electric vehicle (EV) components. This new initiative reflects a strategic shift to reduce reliance on imports and bolster the local manufacturing ecosystem for EVs.
Sources have revealed that the revised PMP will be a significant upgrade from its predecessor, with stringent guidelines designed to enhance localisation in the EV sector. The new framework is expected to play a critical role in the forthcoming Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-III) subsidy scheme, anticipated to be launched later this year.
A dedicated four-member committee, comprising representatives from the Department of Heavy Industries, the Automotive Research Association of India, and other relevant bodies, has been established to develop the new programme. This committee is tasked with crafting guidelines that will support the localisation goals and ensure compliance with the revised standards. Under the new PMP, the focus will shift towards domestic manufacturing of non-critical components. The revised guidelines reduce the list of critical components from 18 to 12, which include essential elements such as electric compressors for HVAC and brakes, AC and DC charging inlets, traction battery packs, DC-to-DC converters, electronic throttles, and vehicle control units. This adjustment aims to streamline the localisation process and encourage the production of these components within India.
The updated programme will also introduce more stringent localisation scrutiny guidelines to detect and address any violations of the proposed norms. This move is designed to ensure that manufacturers adhere to the new requirements and contribute to the goal of increasing domestic content in EVs. The government’s initiative reflects a broader effort to strengthen India’s position in the global EV market while reducing the country’s dependency on imported components. By fostering local production capabilities and enhancing the supply chain resilience, the revised PMP is expected to drive innovation and growth in the domestic EV sector, aligning with the government’s broader vision for sustainable and self-reliant automotive manufacturing.
