New Delhi, March 16 The government has eased localization requirements under the Phased Manufacturing Programme of the Rs 10,900 crore PM E-DRIVE Scheme, providing major relief to manufacturers of electric trucks and buses by allowing them to import traction motors with rare-earth magnets until August 31.
In separate notifications dated March 13, 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), a decision expected to ease component shortages faced by manufacturers.
The deadline for local manufacturing of traction motors used in e-bus and e-truck categories has been extended for the second time, as in September last year, the Centre deferred it until March 2026.
The requirement under the Phased Manufacturing Programme (PMP) of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme stipulates that "the manufacturing of traction motor which at least includes magnet fitment, fitment of rotor assembly into motor, fitment of stator assembly into motor, shaft fitment, bearing fitment, enclosure fitment, connectors fitment, cables fitment shall be domestically performed".
It has now been amended to be in effect from September 1, 2026.
While the government is taking measures to reduce import dependence on China for rare earth magnets, as these are critical inputs in order to secure supply chains for EVs, electronics, aerospace and green energy, securing a steady supply chain has been a challenge until now.
The Centre has notified the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) with an outlay of Rs 7,280 crore.