TL;DR
India has extended the deadline for electric bus and truck manufacturers to import traction motors until August 31, 2026, easing EV localisation norms under the PM E-DRIVE Scheme.
In a significant policy adjustment, the Indian government has eased localisation requirements for electric vehicle manufacturing, specifically extending the timeline for electric bus and truck manufacturers to import traction motors that utilize rare-earth magnets. This extension, granted until August 31, 2026, provides relief to manufacturers grappling with component supply challenges.
The move comes under the government's ₹10,900 crore PM E-DRIVE Scheme, which aims to bolster domestic EV production and strengthen the supply chain for crucial components. This is the second time the government has extended this deadline, with the previous extension pushing the requirement for full localisation of traction motor manufacturing to March 2026.
The relaxation applies to N2 and N3 categories of electric trucks and M2 and M3 categories of electric buses, allowing manufacturers more time to build local production capabilities for these essential components. While the long-term trajectory remains towards increased localisation, this interim measure is expected to help the industry manage current shortages.
