TL;DR
India has implemented new localisation rules for traction motors in electric buses and trucks under the PM E-DRIVE Scheme, effective September 1, 2026, to promote domestic EV component manufacturing.
From September 1, 2026, India has entered a new phase of its electric vehicle localisation policy, imposing stricter domestic manufacturing requirements for traction motors used in electric buses and trucks. This regulatory change, part of the government's PM E-DRIVE Scheme, aims to accelerate the growth of India's indigenous EV component ecosystem.
Manufacturers seeking benefits under the scheme for eligible commercial EVs are now mandated to perform specific traction-motor manufacturing and assembly processes domestically, rather than simply importing complete assemblies. These processes include magnet fitment, rotor and stator assembly, and shaft and bearing fitment. The move is designed to boost in-country value addition and deepen local industry involvement, though it comes amidst industry concerns over the supply of critical rare-earth magnets and calls for an extension of the compliance deadline.
