The Ministry of Heavy Industries has announced a new focus for the next phase of India’s electric‑vehicle policy, moving away from purchase subsidies toward strengthening supply chains.
Central to that effort is a closed‑bidding process for domestic production of sintered rare‑earth magnets—materials that power high‑efficiency motors. Twenty‑one firms entered, five will be chosen, and factories should be operational in roughly 18 months.
Cybersecurity is another priority. Recent incidents showed unauthorised third‑party apps could hijack vehicle systems, so the Ministry is pushing manufacturers to adopt stricter software safeguards, working with the Ministry of Road Transport and Highways.
The government is also encouraging Indian OEMs to set up assembly lines abroad, under its ‘Make in India for the World’ drive, to capture export markets and reduce reliance on imports.
Meanwhile, the Auto and Advanced Chemistry Cell (ACC) Production‑Linked Incentive (PLI) scheme is ending its final year, and a new policy framework is being drafted to align with the evolving supply‑chain picture.
For buyers, the takeaway is that while upfront incentives may fade, the industry is gearing up to deliver more locally sourced components, potentially keeping costs in check and making EVs more reliable.