PM E-Drive Scheme’s New Programme To Support Local Manufacturing Of EV Components

The newly introduced Prime Minister’s E-Drive scheme will soon have a phased manufacturing programme (PMP) to support local manufacturing of electric vehicle (EV) components, according to a report by ET Auto.

Officials said the manufacturers who will source locally manufactured components will receive financial support under the new E-Drive scheme without any domestic value addition mandate. Local manufacturing of the components is mandatory to gain the benefits but suppliers will be allowed to import parts for the components, said the official. 

“There will be a PMP to ensure local manufacturing of EVs. Companies seeking subsidies under the scheme will be given six months to comply with the PMP from the date of scheme notification,” the official told ET Auto. 

Subsidy on electric two-wheelers will be halved to ₹5,000 per vehicle in the financial year 2025 - 26. Similarly, subsidy on electric three-wheelers will be capped at ₹25,000 per vehicle. Furthermore, there will be a biannual inspection clause to keep a check on the EV manufacturers. 

The new PM E-Drive scheme will also absorb the new Electric Mobility Promotion Scheme (EMPS) 2024 which aimed at providing subsidies for EVs. With the previous scheme, many manufacturers sold imported vehicles and wrongly availed of subsidies.