Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Union government has extended localisation requirements for electric bus and truck manufacturers by six months under the PM E-Drive scheme, allowing continued import of traction motors until early September. The decision, taken in the past week by the Ministry of Heavy Industries, provides relief to manufacturers facing supply disruptions linked to rare earth magnet availability. The scheme, with an outlay of INR 10,900 crore, links incentives to phased domestic manufacturing of key EV components. The extension applies to traction motors used in heavy electric vehicles, which were earlier required to be locally produced within strict deadlines. The move aims to ensure continuity in production while giving industry additional time to meet indigenisation targets amid ongoing global supply challenges.
The Union government has extended by six months the localisation deadline for electric bus and truck manufacturers under the PM E-Drive scheme in the past week, allowing companies to continue importing traction motors while working towards domestic production targets amid ongoing supply constraints. Advertisement
The decision was notified by the Ministry of Heavy Industries as part of revisions to the scheme's phased manufacturing requirements. Under the updated framework, manufacturers of electric buses and trucks can import traction motors incorporating rare earth magnets until early September, after which stricter localisation norms will come into effect.
The extension provides temporary relief to manufacturers who had earlier been required to localise production of traction motors by early March. Industry stakeholders had raised concerns regarding the availability of critical components, particularly rare earth magnets, which are essential for motor assembly and are largely dependent on imports.
Traction motors form a core component of electric vehicle powertrains, converting electrical energy from batteries into mechanical energy required to drive the wheels. The localisation requirement includes multiple assembly stages such as rotor and stator integration, magnet fitment, shaft and bearing installation, and enclosure assembly, as specified in the government notification.
The extension comes against the backdrop of global supply chain disruptions and export restrictions on rare earth materials, which have affected component availability for electric vehicle manufacturers. Industry participants have indicated that sourcing such materials remains challenging, with many companies relying on imports of sub-assemblies or fully built motors to maintain production schedules.
The PM E-Drive scheme, with a total allocation of INR 10,900 crore, aims to accelerate the adoption of electric mobility across segments including two-wheelers, three-wheelers, buses, and trucks. Incentives under the scheme are tied to compliance with the Phased Manufacturing Programme, which mandates increasing domestic value addition over time.
Electric buses form a significant component of the scheme, with a dedicated allocation of INR 4,391 crore to support procurement by public transport agencies. Electric trucks are also eligible for subsidies linked to battery capacity and vehicle pricing, provided they meet specified criteria under the programme.
Officials indicated that the extension is intended to balance policy objectives with industry readiness, ensuring that manufacturing activity is not disrupted while localisation targets remain in place. The revised timeline provides manufacturers additional time to establish domestic supply chains, invest in component manufacturing, and align with regulatory requirements.
The move reflects a calibrated approach to policy implementation in the electric mobility sector, where supply chain dependencies and technological requirements continue to influence manufacturing timelines. The government is expected to review progress before the revised deadline, with localisation compliance remaining a key condition for availing incentives under the scheme.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
