Gov to start new phased manufacturing program to boost localization

To increase the share of domestically manufactured components in electric vehicles (EVs), the government has initiated a new phased manufacturing program (PMP).

The planned Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-III) subsidy scheme, which is anticipated to be introduced later this year, is said to be the target market for the manufacturers covered by the new program's criteria, according to a report by Financial Express.

"To frame the new programme, a four-member team comprising representatives from the Department of Heavy Industries, Automotive Research Association of India, and other organisations has been constituted," the report stated.

According to the report, the new scheme would be stricter than the previous one since it will limit the importation of parts that are needed to make electric vehicles.

In addition, the new PMP will require domestic manufacturing of non-critical components.

According to the recommended guidelines, the number of critical components has been reduced from eighteen to twelve.

These parts include, among other things, electronic throttles, vehicle control units, traction battery packs, AC and DC charging inlets, electric compressors for HVAC (heating, ventilation, and air conditioning), electric compressors for brakes, and AC and DC charging inlets.

"The localisation scrutiny guidelines have been explicitly mentioned in the PMP this time around to detect any violations of the proposed norms," citing a source, the report stated.