Despite efforts to encourage local manufacturing for electric vehicle (EV) chargers through local sourcing requirements, India postponed the localization date for half of the EV charger components in the latest notification, signaling difficulties for indigenization.
According to a notification on November 7, the Ministry of Heavy Industries of India updated the phased manufacturing program for EV public charging stations for eligibility under the second phase of the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India (FAME-II).
According to the notification, India delayed some localization deadlines, including the DC Energy Meter, HMI and display, charging guns, charging controllers, and power electronics and modules, with some of the localization deadlines postponed from July 2022 to December 2024. The previous timeline for localization was announced in November 2021.
India's FAME-II scheme requires EV and EV charger manufacturers to meet the minimum of 50% of domestic value addition to be eligible for the incentives. Still, the postponement of deadlines for critical EV charger components highlights the difficulties for makers finding alternative suppliers at home.
India's localization requirements aim to reduce reliance on imports as India's growing demands for EVs are constrained by the limited availability of public chargers. To encourage the establishment of chargers, India reduced the value-added tax for chargers and charging stations for EVs from 18% to 5%, while that for EVs was also lowered to 5% from 12%.
Effective date of indigenization of parts | |||
Item Description | Previous | Updated | Changed |
Charger Enclosure/Panels/Gasket | 2021/12 | 2021/12 | |
Internal Wiring harness | 2021/12 | 2021/12 | |
IS/IEC 60309 connector | 2021/12 | 2021/12 | |
Software/Mobile Application for OCPP and CMS (Central server) | 2021/12 | 2021/12 | |
Auxiliary Power Supply, SMPS | 2021/12 | 2021/12 | |
AC Energy Meter | 2021/12 | 2021/12 | |
DC Energy Meter | 2022/7 | 2024/12 | v |
RFID | 2022/7 | 2022/7 | |
HMI/ Display | 2022/7 | 2024/12 | v |
Input Switchgears like RCD, Fuses, SPD, MCB, MPCB, etc. | 2022/7 | 2022/7 | |
Output Switchgears like DC/AC Contactors, Relays, Voltage/current isolator, Fuses, etc. | 2022/7 | 2024/12 | v |
Charging gun - type 2 | 2023/1 | 2023/1 | |
Charging guns like Bharat DC 001, Type 2, CCS, CHAdeMO, etc. | 2023/1 | 2024/6 | v |
Charger controllers: electronic controllers for communication with EV, charge control, backend communication and other functions. | 2023/1 | 2024/6 | v |
Power electronics/power modules (AC to DC Convertor) | 2023/1 | 2024/12 | v |
Source: Ministry of Heavy Industries of India, November 2023