A recent government notice from November 7, 2023, detailed a full list of charger components and their indigenization schedules, marking the transition to locally made parts.
The Ministry of Heavy Industries (MHI) recently introduced a new phased manufacturing program (PMP) for electric vehicle (EV) charger components. This initiative is part of the FAME India Scheme Phase-II, aimed at enhancing domestic production.
On November 7, 2023, the government issued a detailed program, including a list of charger components and their timelines for becoming domestically produced. The list features key parts such as charger enclosures, internal wiring harnesses, and software for charge point operators (CPO) and management systems (CMS), effective from December 1, 2021. More complex components like power electronics and various charging guns are set to be localized by January 2023 and June 2024.
Under this policy, EV charger manufacturers must ensure at least 50% domestic value addition by December 1, 2024, to qualify for the FAME-II scheme. This percentage is calculated from the ex-factory price minus the cost of imported components, thereby keeping a significant part of the manufacturing process in India.
This strategy is designed to encourage the establishment of more public EV charging stations, addressing the current challenges in EV adoption related to range anxiety. The timeline for indigenous production aims to decrease import reliance and develop a self-reliant EV infrastructure ecosystem.
Compliance will be monitored through audited financial statements and verified by the testing agency of the Ministry of Heavy Industries. This comprehensive manufacturing roadmap is expected to boost the local automotive parts industry, support environmental sustainability, and lessen fossil fuel dependency.
The directive aligns with the Government of India’s vision for greater self-reliance and the enhancement of the domestic manufacturing sector, as emphasized in the ‘Make in India’ initiative.
