The government is intensifying efforts towards electric vehicles and enhancing domestic mineral capabilities for clean energy technologies to reduce reliance on oil imports amidst global price fluctuations and potential supply chain disruptions due to the West Asia crisis. The Ministry of Heavy Industries has taken steps to support electric mobility growth and address vulnerabilities in electric vehicle component supply chains. An extension of the ₹10,900 crore PM E-DRIVE Scheme has been approved to sustain the adoption and manufacturing of electric vehicles, with the e-2W segment extended by three months and the e-3W segment extended by two years.
Policy support under the PM E-DRIVE Scheme has been streamlined to ensure consistent incentives, encourage electric vehicle adoption, and boost domestic manufacturing. Additionally, the Union Cabinet sanctioned the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with an outlay of ₹7,280 crore to establish integrated REPM manufacturing capacity in India and bolster domestic manufacturing for electric vehicles, defense, and aerospace sectors.
Efforts are underway to operationalize the REPM scheme to enhance the localization of electric vehicle components gradually. Continuous engagement with OEMs, component manufacturers, and industry stakeholders is being maintained to fortify supply chain resilience. These initiatives, combined with the Phased Manufacturing Programme, aim to enhance domestic value addition in electric vehicle manufacturing and strengthen the entire electric vehicle value chain.
The implementation of PM E-DRIVE, REPM, and Phased Manufacturing Programme schemes is expected to benefit manufacturers, MSMEs, and component suppliers by increasing domestic value addition, ensuring supply chain stability, and creating investment opportunities. These measures are designed to improve the affordability, accessibility, and reliability of electric vehicles for citizens, reducing dependence on imported fuels and components to shield consumers from global price fluctuations.
