PM E-DRIVE Scheme Revised: Focus on Domestic Production of E-Buses and Batteries
The Ministry of Heavy Industries (MHI) has introduced key amendments to the PM E-DRIVE Scheme (PM Electric Drive Revolution in Innovative Vehicle Enhancement), emphasizing domestic manufacturing of electric buses (e-Buses) and traction battery packs.
This move aims to boost India’s EV ecosystem by reducing import dependency and strengthening local supply chains.
As per the latest notification issued on March 3, 2025, under the Phased Manufacturing Programme (PMP), critical components like traction battery packs, Battery Management Systems (BMS), HVAC systems, and traction motorsmust be manufactured domestically.
The import of battery modules and CKD kits from a single foreign supplier will no longer be permitted. These changes will be implemented in a phased manner over six to twelve months to allow a smooth transition.
Also Read: PM E-DRIVE Scheme to Roll Out 14,028 Electric Buses
Key Amendments in the PM E-DRIVE Scheme for E-Buses
The revised PM E-DRIVE Scheme emphasizes the local manufacturing of essential e-Bus components. The major updates include:
- Strict Localization Requirements: E-bus manufacturers must domestically produce crucial components like traction battery packs, vehicle control units, HVAC systems, and traction motors.
- Phased Implementation: Different deadlines apply for various components, ensuring a smooth transition to local production.
- Restriction on CKD Imports: Importing Complete Knocked Down (CKD) kits from a single supplier is prohibited to promote local sourcing.
Phased Manufacturing Programme (PMP) for E-Buses
| Component | Localization Requirement | Implementation Deadline |
|---|---|---|
| HVAC (Heating, Ventilation & Air Conditioning) | Domestic assembly of blowers, electric compressor, chiller unit, heater, vents, filter, control panel, HMI console | 6 months |
| Electric Compressor for Brake | Domestic manufacturing with cable fitment, connectors, heat-sink, motor, scroll/reciprocating/vane/screw fitment | 6 months |
| Charging Inlet (CCS2) | Contact pin fitment, cable integration, housing fitment domestically performed | 6 months |
| Traction Battery Pack | Domestic manufacturing of cell connections, bus bars, sensors, wiring, safety devices, BMS, thermal management, pressure release valves | 6 months |
| Battery Management System (BMS) | Local assembly of electronic components, PCB, wiring, connectors, software flashing | 12 months (import allowed for first 12 months) |
| DC-DC Converter | Local PCB integration, wiring, crimping, connectors, heat-sink fitment, software flashing | 6 months (basic assembly), 12 months (full localization) |
| Vehicle Control Unit (VCU) | Local PCB assembly, wiring, connectors, heat-sink fitment, software flashing | 6 months |
| Traction Motor | Domestic fitment of rotor, stator, shaft, bearing, connectors, and cables | 6 months |
| Traction Motor Controller (Inverter) | Local integration of high-voltage connectors, heat-sink, cables, software flashing | 6 months (basic assembly), 12 months (full localization) |
| Instrument Cluster | Domestic assembly of PCB, display unit, connectors, wiring, software flashing | 6 months |
Boosting Domestic Battery Manufacturing under the PM E-DRIVE Scheme
A significant focus of the revised PM E-DRIVE Scheme is on the domestic manufacturing of traction battery packs for e-Buses. The new rules prohibit the import of battery modules, requiring manufacturers to produce:
- Cell-to-cell connections
- Bus bar fitment
- Sensors and wiring
- Battery Management System (BMS) integration
- Thermal management systems
The Battery Management System (BMS) must also be domestically manufactured. However, for the first 12 months, imports of BMS are temporarily permitted to allow manufacturers to transition smoothly.
Key Benefits of Localizing Battery Production
- Reduced Dependence on Imports: Encourages India’s self-sufficiency in EV battery production.
- Lower Costs & Supply Chain Stability: Local manufacturing will help control costs and reduce supply chain disruptions.
- Enhanced Safety & Performance: Custom-built batteries tailored for Indian conditions will improve reliability.
Also Read: Govt Approves 9,800 E-Buses for Bengaluru, Hyderabad Under PM E-Drive Scheme
Restrictions on CKD Imports to Strengthen Local Supply Chains
To further promote domestic production, the revised PM E-DRIVE Scheme imposes a strict ban on CKD imports for both e-Buses and their components. This means manufacturers:
- Cannot import key components in a CKD format from a single foreign supplier.
- Must source or manufacture all parts locally to qualify for incentives under the scheme.
- Can integrate multiple components (e.g., DC-DC converter, charger, motor controller) but must comply with PMP norms separately for each component.
This move aligns with the Make in India initiative, encouraging global EV manufacturers to set up production facilities within India.
