Slow drive for e-trucks as local sourcing rule bites

E-truck manufacturers wary of ambitious indigenization due to concerns over tepid demand

- Manas Pimpalkhare

Even after more than two months since the guidelines for e-trucks were announced, no e-truck model has passed the localization test as of date.

(AFP)

A chicken-or-egg-first problem has developed in the country’s electric truck industry, with the government pushing manufacturers to comply with an ambitious component localization plan, while manufacturers demur, given concerns over tepid demand.

Two people aware of consultations held earlier this month between the heavy industries ministry and e-truck makers—including Tata Motors, Ashok Leyland, Volvo Eicher Commercial Vehiclesand Murugappa-group’s IPL-Tech—said the government had asked the companies to comply with the localization criteria. A phased manufacturing programme (PMP) for e-trucks unveiled in July as part ofthe ₹10,900-crore PM E-Drive schemeset deadlines for components that e-truck makers would be allowed to import. Most such products and components are imported from China currently.