Govt Mandates Localisation of BMS, DC-DC Converters, VCUs Under PM E-Drive From Sep 1

The government has mandated localisation of electric truck components - battery management systems (BMS), DC-DC converters and vehicle control units (VCUs) - under the PM E-Drive scheme from September 1, 2026.

The Ministry of Heavy Industries has issued a notification on Wednesday amending the phased manufacturing programme (PMP) for electric trucks in the N2 and N3 categories of trucks.

As per the amendment, manufacturing of BMS, which includes assembly of electronic components or semiconductors or connectors on the PCB, wiring, connector fitment, heatsink fitment (if provided) and enclosure fitment, should be done domestically from September 1. The same applies for DC-DC converters and VCUs as well.

The localisation requirement is linked to eligibility for subsidies under the Rs 10,900-crore PM E-Drive scheme, which provides incentives to electric two-wheelers, three-wheelers, trucks and buses. Subsidies are subject to compliance with localisation norms to ensure domestic value addition.

The scheme has earmarked Rs 500 crore to support adoption of electric trucks. Incentives are available for trucks with a gross vehicle weight above 3.5 tonnes and up to 55 tonnes. The benefit is calculated at Rs 5,000 per kilowatt-hour of battery capacity, capped at 10% of the vehicle’s ex-factory price.

Electric trucks in the N2 category can receive a maximum incentive of Rs 2.7 lakh, while those with a gross vehicle weight between 7.5 tonnes and 12 tonnes are eligible for up to Rs 3.6 lakh. Buyers must scrap an older vehicle and obtain a certificate of deposit to claim the subsidy.