The Ministry of Heavy Industries has extended the deadline for importing rare-earth magnet-based traction motors for electric buses and trucks under the PM E-DRIVE scheme until August 31, 2026. The extension delays mandatory localisation requirements and provides manufacturers additional time to strengthen domestic supply chains.
The Ministry of Heavy Industries (MHI) has extended the deadline for importing traction motors equipped with rare-earth magnets for electric buses and trucks under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme until August 31, 2026.
The extension applies to electric trucks in the N2 and N3 categories and electric buses in the M2 and M3 categories covered under the scheme’s Phased Manufacturing Programme (PMP). From September 1, 2026, manufacturers will be required to comply with revised localisation norms mandating domestic production and assembly of traction motors.
Under the PM E-DRIVE framework, key manufacturing processes, including magnet integration, rotor and stator assembly, shaft installation, bearing fitment, enclosure assembly, and connector and cable integration, are required to be carried out in India. The latest amendment postpones the implementation of these localisation requirements to provide manufacturers additional flexibility amid ongoing supply chain constraints.
The decision comes as the global supply of rare-earth magnets remains under pressure. These materials are critical for manufacturing high-performance traction motors used in electric vehicles and are also widely used in electronics, aerospace and renewable energy applications, creating significant sourcing challenges for EV manufacturers.
To reduce long-term import dependence, the Government of India has approved a ₹7,280 crore programme to establish an integrated domestic manufacturing ecosystem for sintered rare-earth permanent magnets. The initiative aims to promote local production through capital support, sales-linked incentives and competitive bidding for manufacturing facilities.
Industry stakeholders have welcomed the extension, saying it balances the government’s localisation objectives with the need to ensure uninterrupted production of electric buses and trucks. The additional implementation window is expected to help manufacturers strengthen domestic supply chains, invest in local production capabilities and prepare for compliance with the revised localisation norms.
The extension reinforces the government’s phased approach to building a self-reliant electric mobility ecosystem while supporting the continued growth of India’s commercial electric vehicle industry.
