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					</table>The Ministry of Heavy Industries (<a href="https://heavyindustries.gov.in/" target="_blank" rel="noopener">MHI</a>) has mandated a 100% domestic content requirement (DCR) for 18 electric vehicle (EV) components under the two-wheeler, three-wheeler, and e-buses segments to avail of subsidy under the PM E-Drive program.
MHI has amended the eligibility criteria for the phased manufacturing program (PMP) components under PM E-Drive.
PMP was launched under the Faster Adoption &amp; Manufacturing of Electric Vehicles in India-II program to ensure original equipment manufacturers are producing EV components locally. Under the PM E-Drive program, 18 EV components are listed for mandatory local manufacturing to qualify for the subsidies.
The PM E-Drive was <a href="https://mercomindia.com/cabinet-pm-edrive-program" target="_blank" rel="noopener">launched</a> with an outlay of ₹109 billion (~$1.29 billion), focusing on providing demand incentives, deploying EVs, and developing charging infrastructure to support wider EV adoption.
Testing agencies will issue separate guidelines for assessing the domestic manufacturing of the EV components.
Importing battery modules, PMP components, and other EV components in complete knockdown form from a single supplier has also been prohibited.
In an integrated unit, PMP verification will be conducted for individual PMP components.
Separate eligibility criteria exist for electric two and three-wheelers, and e-buses.
Two and Three-wheelers
MHI has extended the mandatory DCR for multiple two-wheeler and three-wheeler EV components to May 1, 2025.
These components include a traction battery pack, battery management system, DC-DC converter, vehicle control unit, onboard charger/external portable charger, traction motor, traction motor controller including inverter, and instrument cluster.
The Ministry mandated the inclusion of the external charger cost for two and three-wheelers in the vehicle ex-factory price.
E-Buses
Compliance dates for e-buses have also been revised to six months from the amendment issue date for multiple PMP components.
PMP components included are heating, ventilation, and air conditioning system, an electric compressor for brake, a charging inlet CCS2 (a combined charging system that allows charging from AC and DC power), traction battery pack, DC-DC converter, vehicle control unit, traction motor, and instrument cluster.
The amendment also provides for domestic manufacturing of the traction motor controller, including the inverter, which requires an assembled printed circuit board integration.
Compliance dates have been extended to 12 months from the amendment date for the battery management system and the traction motor controller manufacturing. This extension also covers the inverter, which requires the assembly of electronic components/semiconductors/connectors on the printed circuit board.
In 2024, EV sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-2024" target="_blank" rel="noopener">reached</a> a record 1.95 million units, an over 27% growth year-over-year against the 1.53 million units sold in 2023.

MHI Mandates 100% DCR Requirement for 18 EV Components Under PM E-Drive

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					</table>India has over 4.64 million registered electric vehicles (EV). The year 2024 saw EV adoption increase across all categories due to various incentives and subsidies offered by the Union and state governments.
EVs account for 5.8% of overall automobile sales, which totaled 5.69 million units in the third quarter, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.
Here are the key developments in India’s EV sector in 2024:
PM E-DRIVE and PSM Program
The Union Cabinet <a href="https://www.mercomindia.com/cabinet-pm-edrive-program" target="_blank" rel="noopener">approved</a> the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Program’, and the ‘PM-eBus Sewa-Payment Security Mechanism (PSM) Program.’ The program with a total outlay of ₹109 billion (~$1.29 billion), focuses on providing demand incentives, deploying EVs, and developing charging infrastructure to support wider EV adoption. It aims to deploy 2.479 million e-2Ws, 316,000 e-3Ws, and 14,028 e-buses under the PM E-DRIVE program. The PSM Program, with an outlay of ₹34.35 billion ($409 million), will support the procurement and operation of over 38,000 electric buses from FY 2024-25 to FY 2028-29
Electric Mobility Promotion Program 2024
The Ministry of Heavy Industries (MHI) <a href="https://www.mercomindia.com/government-5-billion-program-electric-mobility" target="_blank" rel="noopener">launched</a> the Electric Mobility Promotion Program 2024 with a funding of ₹5 billion (~$60.34 million). The program was scheduled from April 1, 2024, to July 31, 2024, and targeted electric two-wheelers and three-wheelers, including e-rickshaws, e-carts, and L5 category vehicles. The program plans to support 372,215 EVs, which include 333,387 EV two-wheelers and 38,828 EV three-wheelers. The program will offer incentives only to vehicles equipped with advanced batteries to promote the use of cutting-edge technology.
Custom Duty Slashed for International EV Manufacturers
In a bid to <a href="https://www.mercomindia.com/ev-policy-pushes-global-players-build-india" target="_blank" rel="noopener">promote</a> India as a manufacturing destination for EVs, the government is offering international manufacturers a reduced customs duty rate of only 15% for five years if they invest at least ₹41.5 billion (~$500 million) to establish manufacturing facilities in the country. This relaxation is subject to certain conditions, such as only EVs with a cost, insurance, and freight value of $35,000 or above are eligible for import under this program. India currently levies a 70% to 100% tax on imported cars based on their value. The number of EVs permitted for import will be capped at the total customs duty waived or the investment made, whichever is lower, with an upper limit of ₹64.84 billion (~$782 million).
FAME-II Program Allocates ₹115 Billion 
MHI <a href="https://www.mercomindia.com/fame-ii-budgetary-vehicles-increased-by-million" target="_blank" rel="noopener">enhanced</a> the budgetary outlay of the Faster Adoption and Manufacturing of Hybrid &amp; Electric Vehicles (FAME-II) program from ₹100 billion (~$1.20 billion) to ₹115 billion (~$1.38 billion) to encourage India’s transition to clean mobility. The subsidies for demand incentive will be eligible for electric two-, three-, and four-wheelers sold until March 31, 2024. As per the revised outlay, subsidies amounting to ₹70 billion ($843 million) were allocated for EVs. Electric two-wheelers have been allotted ₹53 billion ($638 million), electric three-wheelers ₹9.8 billion ($118 million), and electric four-wheelers ₹7.5 billion ($90.35 million). The allocation for electric buses was ₹32 billion ($385 million). Further, ₹40.4 billion ($468.6 million) was earmarked for grants that will fund the creation of capital assets. For the development of EV charging infrastructure, ₹8.3 billion ($99.9 million) was allotted.
Guidelines on EV Charging Infrastructure 
The Ministry of Power <a href="https://www.mercomindia.com/ministry-of-power-releases-ev-charging-infrastructure-guidelines" target="_blank" rel="noopener">released</a> the Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure, 2024, for installing and operating EV chargers. According to the guidelines, any entity can establish a charging infrastructure, and setting up and operating EV charging stations is a de-licensed activity. To encourage public charging stations, the agency owning the land will receive ₹1/kWh (~$0.012) for electricity used for charging at the station. Private entities can also adopt the same model on a bidding basis with a floor price of ₹1/kWh. The tariff for electricity supply to EV charging stations must not exceed the average supply cost.
BIS’s New Standards for 2W And 4W EVs
The Bureau of Indian Standards <a href="https://www.mercomindia.com/bis-new-standards-ev" target="_blank" rel="noopener">unveiled</a> two standards, IS 18590: 2024 and IS 18606: 2024, aiming to enhance the safety of EVs across various categories. It also launched IS 18294: 2023, a standard dedicated to e-rickshaws and e-karts, recognizing the growing popularity of electric mobility solutions beyond traditional cars and trucks.
EV Adoption: Developments in the States 
Andhra Pradesh’s EV policy
Andhra Pradesh <a href="https://www.mercomindia.com/andhra-pradesh-sustainable-electric-mobility-policy" target="_blank" rel="noopener">unveiled</a> its Sustainable Electric Mobility Policy 4.0, valid until 2029. The policy aims to make the state a global hub for high-value EV manufacturing while encouraging the adoption of e-mobility solutions and sustainable practices to achieve carbon neutrality (Scope 1 emissions) in the transport sector by 2047. The policy targets a minimum of 200,000 new electric two-wheelers, a minimum of 10,000 new electric three-wheelers, and a minimum of 20,000 new four-wheeler battery electric vehicles. There must be at least one charging station every 30 kilometers along notified green channels and establish a charging station density of one per 3×3 km grid in designated e-mobility cities.
Karnataka Mandates for EV Charging Infrastructure 
The Karnataka Electricity Regulatory Commission <a href="https://www.mercomindia.com/kerc-issues-guidelines-for-installing-ev-charging-points-in-buildings" target="_blank" rel="noopener">mandated</a> that distribution licensees need approvals to install EV chargers in non-designated areas.  Commercial/residential buildings, complexes, and multi-story buildings within Karnataka with a requisitioned load of 250 kW or more and more than 5,000 sq mt of the built-up area of the building must install two charging points capable of charging any vehicle of any EV segment. EV charging stations in designated EV charging zones can be deployed either as a single point for the association or as individual connections for each consumer with approval from the area distribution licensee.
Himachal Pradesh to Promote EVs 
The state government of Himachal Pradesh <a href="https://www.mercomindia.com/himachal-restricts-departments-buying-diesel-petrol-vehicles" target="_blank" rel="noopener">directed</a> all state departments to stop buying diesel or petroleum vehicles and promote the adoption of EVs on a large scale. The departments will be able to purchase petrol or diesel vehicles only after the state cabinet&#8217;s approval on a case-by-case basis. Further, the diesel buses operating under Himachal Road Transport Corporation will be converted to e-buses in a phased manner.

Top Developments that Shaped the Electric Vehicle Industry in 2024

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