The Ministry of Heavy Industries has revised localisation requirements for electric buses and trucks under the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE), making domestic manufacturing of key electric vehicle components mandatory, Mercom India reported.
The ministry issued two separate notifications amending the Phased Manufacturing Programme rules for electric buses and electric trucks.
Under the revised norms, traction motors used in M2 and M3 category electric buses must be manufactured in India from September 1, 2026. The new requirement specifies that several key processes—including magnet installation, rotor and stator assembly, shaft and bearing installation, enclosure fitting, and connector and cable fitting—must be carried out within the country.
The ministry has also updated localisation requirements for traction motors and related systems used in N2 and N3 category electric trucks. From September 1, 2026, traction motors used in these trucks must also be manufactured domestically with the same set of assembly processes.
For trucks equipped with traction motors integrated with transmission systems, the programme follows a phased approach. Since September 1, 2025, companies have been required to assemble integrated traction motor and transmission systems, traction motor controllers, transmission controllers and software within India.
From September 2026, the requirement will expand to include domestic manufacturing of traction motors and transmissions. This will involve magnet installation, rotor and stator assembly, shaft and bearing fitting, enclosure installation, connector and cable fitting, along with transmission and transmission controller installation.
The rules also cover traction motor controllers, including inverters. Since September 1, 2025, manufacturers have been required to carry out domestic integration of printed circuit board assemblies, high-voltage connectors, cables, heat sinks and enclosures, along with software or firmware flashing.
Beginning September 1, 2026, companies will also need to assemble electronic components, semiconductors and connectors directly onto the printed circuit boards within India.
For N3 category electric trucks that do not use integrated transmission systems, the same domestic manufacturing requirements for traction motor controllers will apply.
Earlier this year, the Ministry of Heavy Industries also revised rules under the Production-Linked Incentive Scheme for Automobile and Auto Components. In October last year, the ministry issued operational guidelines for setting up public electric vehicle charging stations under the PM E-DRIVE programme.
