USE OF ELECTRIC VEHICLES

**Executive Summary** This document outlines the Ministry of Heavy Industries' (MHI) initiatives to strengthen the domestic electric vehicle (EV) manufacturing supply chain. Key schemes include PLI-Auto, PLI-ACC Battery Storage, PM E-DRIVE, REPM Scheme, PM e-Bus Sewa, and SPMEPCI, with budgetary outlays and specific deadlines such as 31.03.2026 for e-2Ws and e-3Ws under PM E-DRIVE. These schemes aim to boost manufacturing capabilities, domestic value addition, and investment in the EV sector. **Key Points / Main Content** * **EV Adoption Data:** * Registered Electric Vehicles (EVs) are projected to increase from 1.74 lakh in FY 2019-20 to 19.68 lakh in FY 2024-25. * **MHI Schemes for EV Manufacturing:** * **PLI-Auto Scheme:** Approved on 15.09.2021 with a budget of ₹25,938 crore to enhance manufacturing of Advanced Automotive Technology (AAT) products, requiring minimum 50% Domestic Value Addition (DVA). * **PLI-ACC Battery Storage Scheme:** Approved on 12.05.2021 with a budget of ₹18,100 crore to promote ACC manufacturing, targeting a cumulative capacity of 50 GWh. * **PM E-DRIVE Scheme:** Notified on 29.09.2024 with a budget of ₹10,900 crore (01.04.2024 - 31.03.2028, with exceptions for e-2Ws and e-3Ws until 31.03.2026). It incentivizes sales of various EV types, supports charging infrastructure, and mandates domestic manufacturing of EV components through Phased Manufacturing Programme (PMP). * **REPM Scheme:** Notified on 15.12.2025 with a budget of ₹7,280 crore to establish 6,000 MTPA of integrated Rare Earth Permanent Magnet (REPM) manufacturing, aiming for self-reliance and global competitiveness. * **PM e-Bus Sewa (PSM) Scheme:** Notified on 28.10.2024 with a budget of ₹3,435.33 crore to support deployment of over 38,000 electric buses by providing payment security to operators. * **SPMEPCI Scheme:** Notified on 15.03.2024 to promote electric car manufacturing in India, requiring applicants to invest a minimum of ₹4,150 crore and achieve 25% DVA by the third year and 50% by the fifth year. **Impact Analysis** * **Automotive Manufacturers** * **Impact:** Will benefit from financial incentives to boost domestic manufacturing of AAT products, electric vehicles, and related components. Increased opportunities for investment and development of manufacturing capabilities. * **Action Required:** Meet DVA targets and comply with the specific requirements of each scheme (PLI-Auto, PM E-DRIVE, SPMEPCI). * **Battery Manufacturers (ACC)** * **Impact:** Encouraged to establish manufacturing capacity through financial incentives and a clear target for cumulative battery manufacturing capacity. * **Action Required:** Participate in the PLI-ACC Battery Storage Scheme to achieve the 50 GWh manufacturing target. * **Electric Vehicle Component Manufacturers** * **Impact:** Opportunities to enhance domestic manufacturing capabilities, particularly for AAT products and specified EV components under PMP. * **Action Required:** Focus on domestic value addition and alignment with the requirements of PLI-Auto and PM E-DRIVE schemes. * **Public Transport Authorities (PTAs) and E-bus Operators** * **Impact:** E-bus operators will receive payment security, facilitating the deployment of a significant number of electric buses. * **Action Required:** Engage with the PM e-Bus Sewa Scheme for deployment support and operational security. * **Rare Earth Permanent Magnet (REPM) Manufacturers** * **Impact:** Incentivized to establish domestic manufacturing capacity for REPM, contributing to self-reliance in a critical sector. * **Action Required:** Participate in the REPM Scheme to establish 6,000 MTPA manufacturing capacity. * **Consumers of Electric Vehicles** * **Impact:** Increased availability and potential cost reduction of various EV segments (e-2W, e-3W, e-Ambulances, e-Trucks, e-buses, and electric cars) due to boosted domestic manufacturing and sales incentives. * **Action Required:** None directly specified in the document for consumers. * **Vehicle Testing Agencies** * **Impact:** Will receive support for upgradation under the PM E-DRIVE Scheme. * **Action Required:** Benefit from upgradation support to facilitate EV component testing.

Key Entities Referenced