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A BMS supplier to FAME-II compliant EV OEMs operates inside three overlapping regulatory and commercial frameworks: FAME-II Phase II demand-side subsidy with 50 percent local content for 2W and 60 percent for 3W/4W; PLI-Auto Component supply-side incentive; and Ind AS 115 five-step revenue model applied to a three-component BMS product (PCB hardware, firmware licence, cloud telemetry subscription). Holding all three intact requires component-level localisation evidence per batch, three-PO performance-obligation revenue recognition, and dual-scheme claim reconciliation each month and quarter.
Maintain a BMS-SKU bill-of-materials master with each line tagged domestic or imported, referenced to supplier invoice or Bill of Entry. Run a monthly content-test report for each batch shipped to each FAME-II OEM customer. Split BMS sale value across three performance obligations (PCB, firmware, telemetry) using stand-alone selling prices, with PCB and firmware recognised on control transfer and telemetry recognised over subscription period. Build FAME-II monthly OEM-input file with batch-level content evidence; build PLI-Auto Component quarterly claim file with incremental-sales calculation against base-year. Reconcile both schemes' content evidence to the same underlying bill-of-materials.
BMS-SKU master with three-component sale structure; bill-of-materials with domestic-or-imported tagging per line; supplier master and Bill-of-Entry register; FAME-II OEM customer master with model-code mapping; PLI-Auto Component registration data with base-year and incremental-sales calculator; Ind AS 115 transaction-price allocation policy with stand-alone selling prices; monthly content-test report template; quarterly PLI claim builder.
A per-batch FAME-II content-test report for OEM consumption files; per-batch Ind AS 115 revenue recognition across three performance obligations with deferred-revenue ageing for telemetry; quarterly PLI-Auto Component claim file with incremental-sales calculation; reconciliation of both regulatory schemes' content evidence to the same bill-of-materials; clawback-resistant audit trail for FAME-II subsidy and PLI disbursement.
A Bangalore BMS supplier to Ola Electric closes May 2026 with 38,500 BMS units shipped across three OEM model codes — the S1 Pro, S1 Air and S1 X — covering both the standard 50 percent local-content FAME-II requirement and a higher Ola-specific qualification target on the premium variant. Each unit sale carries three commercial components (PCB hardware, firmware licence, cloud telemetry subscription) and feeds two regulatory schemes (FAME-II demand-side subsidy at the OEM, PLI-Auto Component supply-side incentive at the supplier). The EV BMS supplier reconciliation FAME-II India workflow holds all three commercial streams and both regulatory schemes intact against one defensible bill-of-materials, batch by batch.
Quick reference
| Concept | Value | Source |
|---|---|---|
| FAME-II 2W local-content threshold | 50% | FAME-II Phase II notification |
| FAME-II 3W/4W local-content threshold | 60% | FAME-II Phase II notification |
| Localisation testing | Per major subsystem | FAME-II Phase II |
| BMS commercial split | PCB + firmware + telemetry | Ind AS 115 |
| Revenue recognition (PCB, firmware) | At control transfer | Ind AS 115 step 5 |
| Revenue recognition (telemetry) | Over subscription period | Ind AS 115 step 5 |
| PLI-Auto Champion scheme | Vehicle OEMs | MHI |
| PLI-Auto Component scheme | Component manufacturers | MHI |
| AAT component | Advanced Automotive Technology | PLI-Auto scheme matrix |
| Monthly OEM reporting | Sales-and-subsidy file | FAME-II portal |
| Quarterly PLI claim | Component scheme | PMA-IFCI |
What are the FAME-II Phase II local-content thresholds
FAME-II Phase II (operational since 2019, with subsequent amendments) requires:
- Electric two-wheelers — 50 percent Domestic Value Addition for the vehicle model to qualify for the FAME-II demand-side subsidy paid at point of sale through the OEM to the buyer.
- Electric three-wheelers and four-wheelers — 60 percent Domestic Value Addition.
Localisation is evaluated at component level — each major subsystem is independently certified:
- Battery pack (cells, BMS, pack assembly, thermal management)
- Motor (stator, rotor, magnets, housing)
- Controller / power electronics
- BMS — covered separately within battery-pack context
- Vehicle harness and connectors
- Charger (on-board and off-board)
- Body and chassis
The OEM aggregates component-level localisation evidence at vehicle-model level and submits to the FAME-II portal alongside monthly sales and subsidy-claim files.
How is a BMS commercially structured for revenue recognition
A modern BMS is rarely a pure hardware sale. The standard structure is three components:
| Component | Pattern | Ind AS 115 PO | Revenue recognition |
|---|---|---|---|
| PCB hardware | One-time sale at vehicle production | Performance obligation 1 | At control transfer (dispatch + GRN) |
| Firmware licence | Perpetual or per-unit licence | Performance obligation 2 | At control transfer with firmware delivery |
| Cloud telemetry | Recurring subscription | Performance obligation 3 | Over subscription period |
Ind AS 115 step 4 requires the transaction price allocated across the three performance obligations on a stand-alone selling price (SSP) basis. SSP determination for firmware and telemetry is the practical complication — there is often no observable SSP because the BMS is sold as a bundled package. Best practice is a residual or cost-plus approach with documented rationale, reviewed annually.
A BMS unit sold to Ola Electric at ₹2,850 typical configuration might allocate as: PCB ₹2,100 (74 percent), firmware ₹450 (16 percent), 24-month telemetry subscription ₹300 (10 percent recognised over 24 months at ₹12.50 per month).
Which EV OEMs are the dominant BMS-supply customers
| OEM | Vehicle | BMS sourcing pattern |
|---|---|---|
| Ola Electric | S1 Pro, S1 Air, S1 X | In-house for premium, external for budget |
| TVS Motor | iQube | External with stringent in-house validation |
| Ather Energy | 450X, 450S, Rizta | Historically in-house, opening external for V3+ |
| Bajaj Auto | Chetak | External Tier-1 supply |
| Hero MotoCorp | Vida V1 | External Tier-1 supply |
| Greaves Cotton | Ampere | External Tier-1 supply |
| Tata Motors | Nexon EV, Tiago EV, Punch EV | Tier-1 extended into EV programmes |
| Mahindra | XUV400, BE 6, XEV 9e | Tier-1 extended into EV programmes |
Each runs its own qualification protocol, integration testing, supplier-quality programme and FAME-II content-evidence collection format.
How does PLI-Auto Component apply to BMS
The PLI-Auto scheme has two streams:
- Champion OEM — incentive paid to vehicle OEMs producing Advanced Automotive Technology (AAT) vehicles
- Component — incentive paid to component manufacturers of AAT components and sub-assemblies, including BMS, traction motor, e-axle, electric powertrain components, hydrogen fuel cell components, sensors and ADAS components
BMS qualifies under the AAT component category if it meets the technology specification and Domestic Value Addition thresholds. A registered BMS supplier claims incentive on incremental sales of qualifying BMS units above a determined base year. The scheme runs for five years from determined base year with milestone-linked incentive rates.
The PLI-Auto Component scheme is separate from FAME-II — FAME-II is demand-side (subsidy to buyer through OEM), PLI-Auto Component is supply-side (incentive to component manufacturer). A BMS supplier can participate in both. The content-evidence underlying each scheme is largely the same bill-of-materials, which is why the reconciliation discipline must hold them on the same data thread.
Three-Way Match Exception Cost Calculator
Quantify the cost of unresolved BMS supply exceptions — content-evidence mismatches, deferred telemetry revenue drift and dual-scheme content reconciliation breaks all age into accepted losses if not closed in cycle.
Open the Exception Cost Calculator →How is monthly content-test reporting built
FAME-II requires the OEM to submit a monthly model-wise sales-and-subsidy-claim file with localisation evidence per qualifying vehicle. The BMS supplier feeds into this with:
- Per-batch content-test report — for each manufacturing batch of BMS units, a report showing domestic-content evidence: PCB substrate origin, component-level localisation status (imported MCU vs domestic, imported MOSFET vs domestic, contactor origin, harness origin, balancing circuit origin), bill-of-materials value split.
- Per-OEM-model dispatch reconciliation — dispatches in the month mapped to OEM vehicle-model codes with batch references.
- Domestic value addition computation — for each model code, the BMS-contribution to overall vehicle DVA.
PLI-Auto Component claim reporting runs quarterly with the same content evidence aggregated at component-SKU level plus incremental-sales calculation against base-year.
Worked example — Bangalore BMS supplier to Ola Electric, May 2026
- Units dispatched in May to Ola Electric: 38,500 across three model codes (S1 Pro 14,200; S1 Air 16,800; S1 X 7,500)
- Per-unit ASP ₹2,850 across the mix
- Total dispatch value: ₹10.97 Cr
- Ind AS 115 revenue allocation:
- PCB hardware (74%): ₹8.12 Cr recognised on control transfer in May
- Firmware licence (16%): ₹1.76 Cr recognised on firmware delivery in May
- Cloud telemetry (10%): ₹1.10 Cr deferred, recognised at ₹4.6 lakh per month over 24 months
- Content evidence for May:
- PCB substrate: 100% domestic (TVS Electronics, Bangalore)
- MCU: imported (NXP, Netherlands) — flagged as imported content
- MOSFETs: 60% domestic (Continental Device India), 40% imported
- Contactors: 100% imported
- Harness: 100% domestic
- Balancing circuits: 100% domestic
- BMS-level DVA computation: 71% domestic content — comfortably above 50% FAME-II 2W threshold and contributes to Ola’s overall vehicle-level DVA submission
- FAME-II May content-test report: submitted to Ola SQA on 3 June
- PLI-Auto Component Q1 incremental-sales calculation: in progress for July submission
What does the Section 393 / GST overlay look like
- Section 393(1)(k) (legacy 194Q) — Ola Electric deducts 0.1 percent TDS on BMS purchases above the ₹50 lakh FY threshold. The BMS supplier reconciles 26AS credits against per-OEM sales.
- GST on BMS sale — IGST/CGST+SGST at notified rate on PCB and firmware components at control transfer. Telemetry subscription is a separate continuous supply of services under Section 13 with monthly invoice and IGST charged at standard rate.
For the broader payment-code reference see TDS payment codes 1001-1092 India and Section 393 TDS new Income Tax Act reconciliation.
FAME-II authority reference
For FAME-II Phase II local-content thresholds, component-level localisation test certification, monthly OEM reporting formats and demand-side subsidy claim mechanics see the FAME-II Portal, Ministry of Heavy Industries, Government of India.
What automated reconciliation changes
Running a BMS-supplier book across three commercial components (PCB, firmware, telemetry), two regulatory schemes (FAME-II + PLI-Auto Component) and seven major EV-OEM customers with per-batch content-test evidence is a continuous accounting and compliance exercise. Purpose-built auto component reconciliation software India holds the BMS-SKU master, the bill-of-materials with domestic-or-imported tagging, the FAME-II monthly OEM-input builder, the PLI-Auto Component quarterly claim builder and the Ind AS 115 three-PO transaction-price allocation in one frame. Customer outcomes include match rate improvement from 51 percent to 88 percent on revenue-grade ledgers. Build is two-to-four weeks on AWS Mumbai (ISO 27001:2022). For the inbound procurement match see three-way matching software India.