India extends e-bus, e-truck motor localisation deadline amid China’s REPM restrictions
BusinessLine 1 hr ago·5 Sept 2026, 10:40 am
The Indian government has extended the deadline for a key localisation policy in the electric vehicle sector. Originally, manufacturers were required to begin sourcing components from domestic suppliers by April or September 2025, but this timeline has now been pushed back to April 2027. This change comes as a response to new restrictions imposed by China on the export of rare earth permanent magnets (REPMs), which are essential for electric motors.
For investors, this development is significant as it reduces immediate pressure on EV makers to rapidly scale up domestic production. By delaying the localisation requirement, the government aims to ensure a steady supply of critical components and prevent potential shortages. This move is likely to benefit the broader EV ecosystem by stabilising the supply chain and allowing companies more time to integrate local manufacturing capabilities.
Excerpt from BusinessLine
In a significant development regarding the import of rare earth magnets from China, the Centre has extended the manufacturing of traction motors for electric buses (e-Buses or M2/M3 category) and e-Trucks (N2/N3) under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.…Read the original at BusinessLine
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