E-bus cos eye rare earth magnets relief

Electric bus, truck firms are planning to ask for a one-year extension on exemptions to import rare earth magnet motors

- Manas Pimpalkhare & Ayaan Kartik

India’s leading electric bus and truck makers are planning to ask for a one-year extension on exemptions to import rare earth magnet motors—critical for electric vehicles (EVs)—under a government scheme, three executives directly aware of the development said.

As per the executives, who spoke on the condition of anonymity, manufacturers may seek an import relaxation till March 2027 under the ₹10,900-crore PM-E Drive scheme.

The earlier deadline for e-trucks and e-buses to switch to locally-made rare earth magnet motors was March 2026, which was extended from 1 September 2025.

The extension is being sought as supply disruptions persist in imports, while local production of rare earth magnets and alternative motor technologies is expected to take another one to two years.