Essential Compliance Tips for New EV Businesses in India  

India’s electric vehicle (EV) revolution is gaining momentum, attracting a surge of enthusiastic entrepreneurs. In this exciting world of EV startups, understanding the regulatory system becomes crucial for a smooth and successful journey.  

The Regulatory Ecosystem 

The Indian EV industry is governed by a dynamic interplay between various central and state-level bodies. Here’s a glimpse into the key players: 

• Ministry of Heavy Industries (MHI): The nodal ministry responsible for formulating and implementing EV policies, including the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) scheme. 
• Department of Heavy Industry (DHI): Implements the FAME scheme, offering subsidies for EV manufacturers and consumers. 
• Ministry of Road Transport and Highways (MoRTH): Responsible for vehicle regulations, including those pertaining to EVs. They issue electric vehicle type approvals and establish safety standards. 
• State Governments: Play a vital role in promoting EV adoption through their own policies and incentives. These can vary depending on the state. 

Essential Compliance Considerations for New EV Businesses 

1. Company Registration: 

• Register your business entity (sole proprietorship, partnership, or Limited Liability Company) under the Companies Act, 2013. 
• Obtain necessary registrations with the Ministry of Micro, Small and Medium Enterprises (MSME) if applicable. 

2. Industrial Licenses and Approvals: 

• Depending on your specific EV product or service, you might require industrial licenses from the Department of Industrial Policy and Promotion (DIPP). 
• Obtain a Manufacturing License (ML) or Industrial Entrepreneurs Memorandum (IEM) if you plan to manufacture EVs or components in India. 
• Secure a Certificate of Conformity (CoC) from the Automotive Research Association of India (ARAI) to ensure your EVs comply with safety and emission standards (Bharat Stage Emission Standards or BSES). 

3. FAME-II Subsidy Scheme: 

• Familiarize yourself with the latest guidelines of the FAME-II scheme, which provides demand incentives for both EV manufacturers and consumers. 

• Register with the DHI to avail yourself of FAME-II benefits, which can significantly boost your market competitiveness. 

4. Battery Regulations and Recycling: 

• The Battery Waste Management Rules, 2000, and the upcoming Battery Recycling Guidelines (under development) mandate responsible battery handling practices. 
• Develop a plan for battery collection, transportation, and recycling in accordance with these regulations. Partnering with authorized recyclers is essential. 

5. Environmental Regulations: 

• Ensure your EV manufacturing and operations comply with environmental regulations set by the Central Pollution Control Board (CPCB) and state pollution control boards. 
• Obtain necessary environmental clearances if your operations involve hazardous waste generation or pollution control measures. 

Staying Updated 

The Indian EV regulatory landscape is constantly evolving. Here’s how to stay informed: 

• Subscribe to official government websites (MHI, DHI, MoRTH) for notifications and updates on EV policies and regulations. 
• Follow industry associations like Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association (ACMA) for industry updates and regulatory interpretations. 
• Consult with legal and regulatory experts specializing in the EV sector for tailored guidance. 

Specific Regulations and Resources for EV Businesses  

Let’s understand specific regulations for different EV segments and explore valuable resources to support your compliance journey. 

Tailored Regulations for Different EV Segments: 

1. Electric Two-Wheelers (e2Ws): 

1. Battery Standards: Ensure your e2W batteries comply with AIS 156, a safety standard for lithium-ion batteries used in EVs. 

2. Vehicle Regulations: Adhere to MoRTH’s specific regulations for e2Ws, including weight limits, dimensions, and safety features. 

3. Subsidy Schemes: e2W manufacturers and consumers can benefit from FAME-II subsidies. Explore specific guidelines and eligibility criteria. 

2. Electric Three-Wheelers (e3Ws): 

1. Vehicle Regulations: MoRTH regulations for e3Ws govern weight limits, dimensions, passenger capacity, and safety features. 

2. Battery Swapping Systems: If your business model involves battery swapping, familiarize yourself with potential regulatory frameworks being developed in this emerging space. 

3. Electric Cars: 

1. Vehicle Type Approval: Obtain electric vehicle type approval from ARAI to ensure compliance with BSES norms and safety standards. 

2. Charging Infrastructure: If you plan to install charging stations, understand regulations set by the Ministry of Power and local electricity distribution companies. 

4. Electric Buses: 

1. State-Specific Regulations: State governments often have dedicated policies and subsidy schemes for promoting electric buses. 

2. Homologation Process: Follow the homologation process prescribed by MoRTH for electric buses. 

Essential Resources for EV Businesses: 

• Government Websites: Bookmark the websites of MHI, DHI, MoRTH, and state nodal agencies for EV policies, notifications, and scheme guidelines. 
• FAME-II Portal: Utilize the FAME-II online portal to register for the scheme, understand eligibility criteria, and track subsidy applications. 
• Industry Associations: Actively engage with industry associations like SIAM and ACMA. They provide valuable resources, conduct knowledge-sharing events, and advocate for EV businesses. 
• Legal and Regulatory Experts: Partner with legal and regulatory consultants specializing in the EV sector. They can offer tailored guidance on navigating compliance complexities. 

Embracing a Culture of Compliance 

Building a successful EV business in India hinges on a commitment to regulatory compliance. Here are some additional tips to ensure smooth sailing: 

• Develop a Compliance Management System: Establish a robust system for tracking regulatory updates, managing approvals, and ensuring adherence to applicable regulations. 
• Invest in Training: Educate your employees on relevant EV regulations and best practices. A well-informed team is crucial for maintaining compliance. 
• Stay Proactive: Don’t wait for regulatory issues to arise. Proactively seek clarifications and address potential compliance gaps. 

The Road Ahead 

By navigating the regulatory landscape with diligence and leveraging available resources, your new EV business can contribute to a thriving and sustainable EV ecosystem in India. Remember, India Pavilion is here to support your journey. We offer: 

• Policy and Regulatory Updates: We keep you informed about the latest policy developments and regulatory changes in the EV sector. 
• Industry Connect: We facilitate connections with relevant government agencies, industry bodies, and potential investors. 
• Showcasing Innovation: We provide a platform to showcase your innovative EV solutions at national and international events. 

Join India Pavilion and embark on your electrifying journey towards a successful and compliant EV business in India! Together, let’s power a cleaner and brighter future.