The Ministry of Heavy Industries is consulting with stakeholders on a phased manufacturing plan (PMP) that will require stricter localisation for electric vehicle (EV) manufacturers to qualify for the proposed Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-III) subsidy scheme.
Power and control wiring harnesses, connectors, tiny circuit breakers, electric safety devices, lighting, and body panels, which were previously excluded from the list, must now be manufactured locally.
The ministry reaffirmed that all other EV parts, components, and sub-assemblies must be produced and built locally. It has requested feedback from automakers on the proposed adjustments.
A clear path to localization for PMP components is being discussed. For example, only the cell and accompanying thermal and battery management systems can be imported for electric two- and three-wheelers, as well as electric rickshaws.
Battery modules or whole battery packs in completely disassembled condition are not authorized. All remaining components needed to complete the battery pack must be sourced or made domestically. Only the semiconductor devices and electronics used in onboard chargers can be imported. All other components, including finished product assembly, must be manufactured domestically.
Vehicle control units and direct current (DC)-to-DC converters can only import semiconductor devices and electronic components. All other components, including PCB manufacture, must be supplied domestically. Only permanent magnets, Hall Effect sensor kits, and the encoder can be imported for the traction motor, another important EV component; all other components must be purchased domestically.
EV manufacturers want to express concern over the government’s mandated demand for domestic PCB fabrication across PMP components. They contend that the domestic basis for PCB manufacturing is severely constrained, posing a stumbling barrier.