2 hrs ago
India Extends E-Bus, E-Truck Motor Localisation Deadline Amid Restrictions
India wants electric buses and trucks to use more parts made inside the country.
Their motors need special rare earth magnets.
China has restricted exports of these magnets, and Indian vehicle companies reportedly have not received import licences.
Because of this, companies are relying on importing complete motors instead.
The Indian government has therefore delayed the deadline for making these motors locally.
The new e-bus deadline is April 1, 2027.
Similar domestic manufacturing rules apply to electric trucks.
The rules cover parts such as magnets, rotors, stators, shafts, bearings and enclosures.
The changes are part of a government scheme that provides support for increasing domestic production.
India extended the deadline for domestic traction-motor manufacturing for e-buses by six months, from September 1, 2026, to April 1, 2027.
The extension follows China’s restrictions on rare earth permanent magnet imports and the reported absence of licences for Indian automotive companies.
The Ministry of Heavy Industries issued the third amendment to the e-bus phased manufacturing programme.
From April 1, 2027, e-bus traction motors must undergo specified manufacturing steps in India, including magnet, rotor, stator, shaft and bearing fitment.
The PM E-DRIVE Scheme has an outlay of ₹10,900 crore and links subsidies to domestic value addition.
- Who
- The Ministry of Heavy Industries, the Indian government and Indian automotive companies.
- What
- The government extended deadlines and amended phased manufacturing rules for electric-bus and electric-truck traction motors.
- Where
- India, with the change linked to restrictions on rare earth permanent magnet imports from China.
- When
- The amendment was notified on September 3, 2026, and published on September 5, 2026; the revised e-bus deadline is April 1, 2027.
- Why
- China has not granted reported import licences to Indian automotive companies, making it difficult for manufacturers to localise traction-motor production and qualify for scheme incentives.
Key facts
- Scheme
- Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)
- Scheme outlay
- ₹10,900 crore for two years
- New e-bus deadline
- April 1, 2027
- Previous e-bus deadline
- September 1, 2026
- Affected vehicles
- Electric buses in M2/M3 categories and electric trucks in N2/N3 categories
- Required manufacturing
- Domestic fitment and assembly of specified traction-motor components
- Amendment status
- Third amendment to the e-bus phased manufacturing programme
Quotes
Senior auto industry executive
An unnamed senior executive from the automotive industry quoted on the localisation difficulties.
“All the traction motors for heavy duty vehicles like the e-Buses or e-Trucks require permanent magnets, but there is a challenge of localisation here because of restrictions on import of those magnets from China. Therefore, the government has to extend the dates for localisation of these parts in India as the mathematics for incentives cannot be worked out under the PM E-DRIVE scheme”
thehindubusinessline.com
Sources
Related news
L&T Plans India Rare-Earth Magnet Manufacturing to Reduce China Dependence
L&T Plans Rare-Earth Magnet Production as India Cuts China Reliance
India-China Thaw Raises EV Technology and Component Access Hopes
India’s Rs 7,280-Crore Magnet Scheme Draws Three Diverse Bidders
Govt Extends PM E-Drive E-Two-Wheeler Subsidy to FY28, Raises Allocation
Pune Study Finds Frequent Bus Access Has Fallen Sharply
PM E-DRIVE: Govt Caps EV Two-Wheeler Incentive at Rs 5,000
India's freight sector: cleaner vehicles, smarter operations, richer drivers
Ather Energy Q1 Loss Shrinks, Turns EBITDA Positive
