India is accelerating its push into electric vehicles by combining PM E-DRIVE, the rare earth magnet initiative (REPM), and the Phased Manufacturing Programme to strengthen the entire EV value chain, improve affordability, and reduce import dependence.

Together, these programs aim to boost domestic manufacturing, lower costs for citizens, and shield the sector from global price volatility.

A pre-bid conference on April 7, 2026 drew 25 companies, as the government issued the bid RFP on March 20, 2026, using a two-cover Least Cost Selection process through the CPP Portal.

The procurement process emphasizes transparency and efficiency with centralized bidding and a structured two-cover evaluation.

Officials say the initiatives will benefit manufacturers, small businesses, and component suppliers by improving supply chain stability and creating new investment opportunities.

The PM E-DRIVE scheme funding of ₹10,900 crore is being extended to sustain EV adoption and manufacturing, with two-wheelers extended to July 31, 2026 and three-wheelers and e-rickshaws to March 31, 2028.

A Cabinet-approved ₹7,280 crore scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets aims to establish 6,000 MTPA integrated REPM capacity, strengthening supply chains for EVs, defense, and aerospace.

Efforts are underway to operationalize REPM by engaging OEMs and industry stakeholders to localize EV components and enhance supply chain resilience.

PM E-DRIVE policy support is being streamlined to ensure continuity of incentives and boost domestic EV manufacturing.

Together, these measures are expected to drive stronger domestic demand, faster local production, and a more resilient, self-reliant EV ecosystem.

The Phased Manufacturing Programme complements these efforts by progressively increasing domestic value addition and localizing components across vehicle subsystems.

Overall, the plan aims to cut oil dependence and shield the economy from price volatility by expanding EV adoption and securing domestic critical mineral supply chains.