Govt eases rules to speed up electric bus, truck rollouts

E-truck, bus makers allowed to import rare earth magnet traction motors till September 2026

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This is the second time that rules for local manufacturing have been relaxed for electric buses and trucks.

India has allowed electric truck and bus makers to import rare earth magnet traction motors till September 2026 under the ₹10,900-crore PM E-Drive scheme, to ease component shortages and support early electric vehicle (EV) deployments.

This is the second time that rules for local manufacturing have been relaxed for these vehicle segments. Earlier in September 2025, the ministry of heavy industries had deferred the deadline till March 2026 to stop imports of this component under the scheme's sourcing rules.

In a 13 March notification, the government has allowed the use of imported traction motor sub-assemblies in electric trucks and buses till 1 September 2026.

PME-Drive, or Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement, scheme aims to promote electric mobility by subsidising electric vehicles and charging infrastructure.