TL;DR
India has implemented new localisation rules for commercial EV traction motors from September 1, 2026, requiring domestic manufacturing of key components for electric buses and trucks.
As of September 1, 2026, India has initiated the next phase of its electric vehicle localization strategy, implementing stricter domestic manufacturing requirements for traction motors used in electric buses and trucks. This move under the PM E-DRIVE Scheme aims to deepen India's EV component ecosystem and foster self-reliance in the electric commercial vehicle industry.
The new regulations mandate specific traction-motor manufacturing and assembly processes, such as magnet fitment, rotor assembly, stator assembly, shaft fitment, and bearing fitment, to be carried out domestically. This policy change ends a temporary relaxation that allowed the import of traction motors containing rare-earth magnets, posing a challenge for manufacturers who face uncertainties in the supply of these critical materials.
