The Ministry of Heavy Industries (MHI) has amended certain provisions of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) program, mandating an increase in domestic production of specific components for electric trucks (e-trucks) under the N2 and N3 categories.

The N2 category includes trucks with a gross vehicle weight (GVW) exceeding 3.5 tons but not exceeding 12 tons, while the N3 category includes trucks with a GVW exceeding 12 tons but under 55 tons.

The latest MHI notifications mandate domestic production of battery management systems (BMS), DC-DC converters, and vehicle control units (VCU) for the trucks.

The mandate includes the assembly of electronic components, semiconductors, and connectors on printed circuit boards; wiring; connector and enclosure fitment; heat-sink installation; and software or firmware flashing for these components within India.

The crimping of the wiring for the DC-DC converter must also be done in the country.

Earlier, MHI amended the Phased Manufacturing Program requirements for electric buses and trucks under PM E-DRIVE, mandating domestic manufacturing of key electric-vehicle components.

PM E-DRIVE was launched on October 1, 2024, and later extended until 31 March 2028. Its goals are to accelerate electric vehicle (EV) adoption, build domestic EV manufacturing capacity, support MSMEs and startups, create charging infrastructure, and enable the adoption of over 2.8 million EVs.

The government has specified that if funds are exhausted before the program’s end date of March 31, 2028, the program will be discontinued accordingly, and no further claims will be accepted.

Recently, MHI amended certain provisions of the PM E-DRIVE program, reducing incentives for electric two-wheelers and three-wheelers.

This March, the Parliament’s Standing Committee on Industry raised concerns about the dominance of the automobile and EV ecosystem in the MHI budget, which is around ₹75.37 billion (~$802.49 million), accounting for 94.9% of the total MHI demand. The Production-Linked Incentive (PLI) Auto alone accounted for 74.8% of total demand.

Last July, MHI issued a notification offering demand incentives for e-trucks under PM E-DRIVE. E-trucks would receive the lesser of the following demand incentives: ₹5,000 (~$58.28) multiplied by battery capacity measured in kilowatt-hour, 10% of the truck’s ex-factory price (excluding trailer).