Powering Up: India’s Strategic Push to Dominate the Global EV Manufacturing Sector

In a bid to position India as a global hub for electric vehicle (EV) manufacturing, the government has rolled out several initiatives aimed at bolstering production and adoption. These efforts were outlined by Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, during a written reply in the Lok Sabha.

Key Government Initiatives for EV Manufacturing

1. Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-Auto):
   Launched on September 15, 2021, the PLI-Auto scheme seeks to enhance India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products. With a budgetary outlay of ₹25,938 crores for five years, the scheme has already attracted 82 approved applicants with multiple manufacturing and engineering units nationwide. Although no disbursements have been made under the scheme so far, it is set to create a significant impact in the long run.
2. PLI Scheme for Advanced Chemistry Cells (PLI-ACC):
   Approved on May 12, 2021, this initiative focuses on developing a robust domestic battery manufacturing ecosystem. With a budget of ₹18,100 crores, the scheme targets a cumulative Advanced Chemistry Cell (ACC) manufacturing capacity of 50 GWh. The scheme is in its gestation phase until December 2024, with disbursements expected to follow.
3. Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI):
   Introduced on March 15, 2024, SPMEPCI encourages the establishment of domestic manufacturing units for electric passenger cars. It offers a reduced customs duty of 15% on Completely Built Units (CBUs) for five years, conditional on setting up manufacturing facilities within the country. Unlike the other schemes, SPMEPCI does not entail financial outlays but provides significant duty benefits to approved applicants.

Nationwide Impact and Regular Consultations

The government has ensured that these initiatives remain non-discriminatory toward specific states, allowing benefits to flow across the nation. Regular campaigns and consultations have been organized to promote EV adoption, including:

• PLI Auto Conclave (January 16, 2024): Highlighting opportunities under the PLI-Auto scheme.
• OEM Consultation for Electric Trucks (May 8, 2024): Exploring EV solutions for logistics.
• Stakeholder Consultation on e-Bus Roadmap (May 9, 2024): Shaping the future of electric buses in India.
• FAME Success Event (September 18, 2024): Celebrating achievements under the Faster Adoption and Manufacturing of Hybrid and EV (FAME) program.
• PM E-DRIVE Consultation (September 28-29, 2024): Engaging with OEMs and dealers before launching a new national initiative.

Transforming India’s EV Landscape

While direct financial disbursements under PLI-Auto and PLI-ACC are pending, these schemes have laid a strong foundation for transforming India’s EV ecosystem. By fostering innovation, reducing import dependency, and incentivizing local production, the government aims to make India a leader in sustainable mobility solutions.

With these comprehensive measures, India is charging ahead to embrace an electric future, making strides in both domestic manufacturing and EV adoption.

As per the inputs provided by Society of Indian Automobile Manufacturers (SIAM), the total annual production of Electric Vehicles (EVs) in India during the last five years, year-wise is as given below:                                                                                                                      

State-wise data of production of Electric Vehicles in the country is not available.

The state-wise number of manufacturing facilities as reported by approved applicants under the scheme is given below:

State-wise details of the total number of beneficiary firms approved under the PLI-ACC Scheme are as under: