Government extends EV components localization deadline by April 2021

Government extends EV components localization deadline by April 2021

The Department of Heavy Industry has announced that it has extended the deadline for the localization of numerous components under its phased manufacturing programme (PMP) for electric vehicles (EV) from 1st October to 1st April 2021 offering a respite to the industry. Compliance with the PMP is a condition for availing subsidies.

The move is projected to assist the young EV industry as the localization plans of numerous companies were disrupted due to the disruption from the pandemic. To get demand incentives under the Rs. 10,000-crore second phase of the Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme, companies must progressively increase the local obtaining of components for their EVs as required in the PMP.

Amid the components for which the centre extended the date for authorized local procurement were traction motors, motor controllers, vehicle control units, on-board chargers, convertors, and instrument panels.

“The government has taken a practical approach and given six months extra. It was a much-needed move,” said Sohinder Gill, director general of Society of Manufacturers of Electric Vehicles (SMEV).

The pandemic deferred the complete ecosystem by three-four months, Gill said. Companies that were considering to invest in the local production of EV components pushed back their plans. The process of vehicle certification also decelerated during this period.

Vehicle testing agencies like the Automotive Research Association of India (ARAI) and International Centre for Automotive Technology (ICAT) certify compliance of EVs with the PMP. They usually take two-three months for clearing a vehicle but now that period has been stretched to four-five months, Gill believed.

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