Centre plans to scrap mandatory electric vehicle incentive-linked tests

The Centre is planning to scrap the mandatory battery safety tests required to get incentives under the government’s production-linked incentive (PLI) schemes.

The decision comes after a committee headed by the Automotive Research Association of India (ARAI) director submitted its re-examination report to the Ministry of Heavy Industries last month, Business Standard has learnt.

“According to the ARAI’s analysis, the battery safety tests announced by the ministry are not needed as the industry is complying with the Ministry of Road Transport and Highways’ (MoRTH’s) recently notified norms,” said government officials aware of the matter.

The overlap

The two nodal ministries — Ministry of Heavy Industries and MoRTH — responsible for regulating the transport and electric vehicles (EV) sectors announced separate sets of battery safety standards after dozens of incidents of EV fires were reported in the country last year.

On September 1, 2022, MoRTH issued amendments to the EV battery testing standards AIS-156 for two- and three-wheelers and AIS-038 (Revision 2) for four-wheelers. These amendments included additional safety requirements related to battery cells, battery management systems, onboard chargers, design of battery packs, thermal propagation due to internal cell short circuits leading to fire, etc.

The amendments were to be implemented from October 1, 2022, but they were given an extension, after which they were implemented in two phases with effect from December 1, 2022 (Phase 1) and March 31, 2023 (Phase 2), as stated by MoRTH in a statement.

The new AIS-156 and AIS-038 standards were introduced by the ministry under the Central Motor Vehicle Rules (CMVR), which are necessary for vehicle manufacturing.

On the other hand, on November 2, the ministry also introduced mandatory testing parameters to enhance the human safety of EVs incentivised under various incentive schemes like the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME II) scheme and PLI schemes for automotive and auto components and advanced chemistry cells. The deadline for the implementation of the ministry’s guidelines was April 1, 2023.

The ministry’s testing parameters were more stringent than the MoRTH norms and required checks at three levels — the cell, battery management system, and the battery pack.

As MoRTH’s guidelines were mandatory for the manufacturing of the vehicles, the automotive industry first focused on complying with those and demanded an extension for the ministry’s certification.

On April 29, Business Standard first reported about the ministry’s decision to give a six-month deadline extension until October 1.

However, after stakeholders pointed out certain overlaps between the directives of the two ministries and expressed concerns that some of the testing requirements are too stringent and difficult to comply with, the ministry formed a committee under the leadership of the director of ARAI.

ARAI is a prime testing and certification agency notified by the Government of India under Rule 126 of CMVR, 1989.

After receiving a report from the committee, the ministry is considering scrapping the mandatory testing parameters.

Government officials say that the ministry’s decision to scrap the norms is also driven by its breach of administrative control.

“The manufacturing, registration, and rules related to the operations of automobiles fall within the MoRTH’s domain. Since MoRTH testing standards are already in place, there was no need for additional certification,” said an official involved in the decision.