NEW DELHI — The central government is ramping up efforts to expand electric vehicle adoption and strengthen domestic production of critical minerals as it seeks to reduce reliance on oil imports amid global price volatility and supply chain risks linked to the West Asia crisis.
In a statement issued Monday, officials said the Ministry of Heavy Industries has taken coordinated steps since the onset of the crisis to sustain growth in electric mobility while addressing vulnerabilities in the supply chain for key components.
As part of the push, the government has extended the ₹10,900 crore PM E-DRIVE Scheme to maintain momentum in electric vehicle adoption and manufacturing. The electric two-wheeler segment has been extended by three months through July 31, 2026, while the electric three-wheeler category, including e-rickshaws and e-carts, has been extended by two years through March 31, 2028.
Officials said policy support under the scheme has been streamlined to ensure continuity of incentives, boost adoption, and promote domestic manufacturing.
In a parallel move, the Union Cabinet had approved a ₹7,280 crore program in November 2025 to promote manufacturing of sintered rare earth permanent magnets, a key component in electric vehicles and other clean energy technologies. The initiative aims to establish 6,000 metric tons per annum of integrated manufacturing capacity in India and strengthen supply chains across sectors including electric vehicles, defense, and aerospace.
The government is now moving to operationalize the program, with a pre-bid conference held on April 7, 2026, involving 25 companies, and a request for proposals issued on March 20. The bidding process is being conducted through a transparent system on the central procurement portal.
Officials said the effort is part of a broader strategy that includes the ongoing Phased Manufacturing Programme, which is designed to increase domestic value addition in electric vehicle production.
Together, the PM E-DRIVE scheme, the rare earth magnet initiative, and the phased manufacturing program are expected to strengthen the entire electric vehicle value chain by addressing both demand and supply-side challenges.
The PM E-DRIVE program provides incentives and policy certainty to automakers, enabling them to scale production and accelerate adoption, while the rare earth initiative focuses on reducing dependence on imported materials. The phased manufacturing approach supports gradual localization across vehicle components and subsystems.
The government said these initiatives are expected to benefit manufacturers, small businesses, and component suppliers by improving supply chain stability and creating new investment opportunities.
For consumers, officials said the measures are aimed at improving the affordability, accessibility, and reliability of electric vehicles while reducing exposure to fluctuations in global oil and component prices. (Source: IANS)
