Centre tightens domestic manufacturing rules for e-buses, trucks

The Centre has tightened rules for e-buses and trucks under the PM E-DRIVE scheme, mandating domestic manufacturing for key components like traction motors and controllers from April 1, 2027. The move aims to deepen localisation of EV technology.

The Centre has tightened domestic manufacturing requirements for electric buses and trucks under the PM E-DRIVE scheme, mandating that key traction motor and controller components be manufactured in India from April 1, 2027, a move aimed at deepening localisation of critical electric-vehicle technology.

The Ministry of Heavy Industries, through two notifications dated September 3, amended the Phased Manufacturing Programme (PMP) for M2/M3 e-buses and N2/N3 e-trucks under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. The changes will take effect from their publication in the Official Gazette.

New Mandates for E-Buses

For e-buses, the revised PMP requires domestic manufacturing of traction motors, including at least rotor and stator assembly, bearing, enclosure, connector and cable fitment from September 1. From April 1, 2027, the requirement will be expanded to include magnet and shaft fitment as part of domestic manufacturing. The government has also prescribed deeper localisation for traction motor controllers, including inverters. From April 2027, domestic manufacturing will have to include assembly of electronic components, semiconductors and connectors on the printed circuit board, along with high-voltage connector, cable, heatsink and enclosure fitment and software or firmware flashing.

Similar Rules for E-Trucks

Similar requirements have been extended to N2 and N3 category e-trucks. The revised rules require domestic manufacturing of traction motors from April 2027, covering magnet, rotor, stator, shaft, bearing, enclosure, connector and cable fitment. For integrated traction motor and transmission systems, the localisation requirements will additionally cover transmission and transmission-controller fitment. The government will also require domestic manufacturing of traction motor controllers, including inverters, with assembly of electronic components, semiconductors and connectors on PCBs from April 2027.

Shift Towards Deeper Manufacturing

The notifications build on the PMP introduced for e-buses and e-trucks in 2025 and subsequently amended in 2025 and 2026. The latest changes indicate a further shift from domestic assembly towards deeper manufacturing of critical electric-drivetrain components within India. (ANI)

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