TL;DR
Indian EV manufacturers are requesting a one-year extension for importing rare earth magnet motors due to supply disruptions and domestic production delays, impacting the PM-E Drive scheme.
Leading Indian electric bus and truck manufacturers are preparing to request a one-year extension for the import of crucial rare earth magnet motors. These components are vital for electric vehicles (EVs), and the manufacturers aim to push the import deadline to March 2027 under the government’s significant ₹10,900-crore PM-E Drive scheme. This request underscores the ongoing challenges in securing these essential components and developing viable domestic alternatives.
The proposed extension highlights persistent supply disruptions, particularly from China, and delays in establishing local production capabilities. Companies such as Tata Motors and Ashok Leyland are involved in these discussions, seeking to ensure continuity for their large tender orders and to mitigate increased operational costs. While the PM-E Drive scheme encourages domestic manufacturing through subsidies, an extension on import rules is deemed necessary for manufacturers to meet their commitments and prevent disruptions in India's electric mobility transition.
