The Indian government has granted a six-month extension to localisation requirements for electric bus and truck manufacturers under the PM e-DRIVE scheme, providing relief to companies facing supply chain constraints. The decision allows manufacturers to continue importing traction motors that use rare-earth magnets until September 1, 2026 while they prepare to meet domestic manufacturing requirements.
Earlier, manufacturers were required to locally produce traction motors by March 1 for electric trucks and March 3 for electric buses. However, the extension was introduced after industry players raised concerns about global supply disruptions, particularly the shortage of rare-earth magnets, which are essential components in electric vehicle motors.
Under the revised guidelines issued by the Ministry of Heavy Industries, localisation of traction motors will involve manufacturing key components in India, including rotor and stator assembly, magnet fitment, shaft and bearing integration, enclosure systems, connectors and cables.
The move is expected to help electric commercial vehicle manufacturers maintain production momentum while gradually building domestic manufacturing capabilities. It also aligns with the government’s broader strategy to strengthen India’s EV supply chain and reduce dependence on imported components, particularly those sourced from China.
The PM e-DRIVE initiative is designed to accelerate electric mobility adoption across segments such as buses, trucks and other commercial vehicles while promoting local manufacturing through phased localisation targets.
