Government Relaxes Import Regulations for E-Bus and E-Truck Traction Motors Under PM E-DRIVE Initiative

PM E-DRIVE Scheme Update: Government Eases Localisation Requirements

The government has announced a significant relaxation in localisation requirements under the Phased Manufacturing Programme (PMP) of the Rs 10,900 crore PM E-DRIVE Scheme. As of August 31, manufacturers of electric trucks and buses will be allowed to import traction motors with rare-earth magnets, providing relief from component shortages.

Key Highlights

• The Ministry of Heavy Industries has deferred the deadline to stop imports of traction motors used in e-trucks (N2/N3) and e-buses (M2/M3) until August 31.
• The deadline for local manufacturing of traction motors used in e-bus and e-truck categories has been extended for the second time, from March 2026 to September 1, 2026.
• The amended requirement stipulates that the manufacturing of traction motors, including magnet fitment, shall be domestically performed from September 1, 2026.

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Government Initiatives

• The Centre has notified the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) with an outlay of Rs 7,280 crore.
• The government is taking measures to reduce dependence on China for rare earth magnets, a critical input for securing supply chains for EVs, electronics, aerospace, and green energy.

This development is expected to ease component shortages faced by manufacturers and support the growth of the electric vehicle (EV) sector in India.