In the EV sector, the government has initiated a new phased manufacturing program (PMP) aimed at enhancing the proportion of domestically produced components in electric vehicles (EVs). This initiative is designed to complement the upcoming Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-III) subsidy scheme, which is expected to be introduced later this year.
According to sources, the new PMP will have a more rigorous framework compared to its predecessor, focusing on reducing the reliance on imported components essential for EV production. A dedicated four-member team has been established to develop the new program. This team includes representatives from the Department of Heavy Industries, the Automotive Research Association of India, and several other relevant organizations.
Their role is to draft the guidelines for the PMP, ensuring it aligns with the goals of the FAME-III scheme and effectively promotes domestic manufacturing. The forthcoming program will be stricter in its requirements than previous iterations. It is expected to impose tighter restrictions on the importation of components used in EV production, aiming to boost local manufacturing capabilities.
A significant change in the new PMP is the adjustment in the list of critical components. The number of components classified as critical has been reduced from 18 to 12. These components are crucial to the functionality and performance of electric vehicles and include items such as electric compressors for heating, ventilation, and air conditioning (HVAC), electric compressors for braking systems, AC and DC charging inlets, traction battery packs, DC-to-DC converters, electronic throttles, and vehicle control units.
The revised Project Management Plan (PMP) will introduce rigorous new guidelines for localization oversight, aimed at meticulously monitoring and ensuring adherence to the updated standards. These comprehensive guidelines are crafted to identify and rectify any deviations from the program’s established norms, thereby bolstering the commitment to enhancing domestic production capabilities and diminishing reliance on foreign-made components.
The emphasis on requiring the manufacture of non-essential components within the national borders highlights the government’s strategic focus on nurturing a resilient domestic electric vehicle (EV) manufacturing sector. This shift underscores a broader initiative to cultivate a self-sufficient and robust industrial ecosystem, reinforcing the nation’s dedication to advancing local production and reducing dependence on external sources.
