The Centre is pushing for more electric vehicle (EV) components to be made in India.
Under the PM E-DRIVE scheme, the government has tightened domestic manufacturing rules for electric buses and trucks.
The aim is to reduce dependence on imported EV technology and strengthen India’s local manufacturing industry.
The new rules will require manufacturers to produce key parts of electric drivetrains in India.
What Will Change for Electric Buses?
The Ministry of Heavy Industries has revised the Phased Manufacturing Programme (PMP) for M2 and M3 category electric buses.
For traction motors, domestic manufacturing requirements will apply from September 1.
This will include important parts such as the rotor and stator assembly, bearings, enclosure, connectors and cables.
The rules will become stricter from April 1, 2027.
From that date, manufacturers will also have to make and fit components such as the magnet and shaft in India.
The government has also increased localisation requirements for traction motor controllers and inverters.
From April 2027, their manufacturing in India will have to include assembling electronic components, semiconductors and connectors onto printed circuit boards.
High-voltage connectors, cables, heatsinks and enclosures will also need to be fitted domestically.
Software or firmware flashing will also be part of the local manufacturing process.
E-Truck Makers Will Face Similar Rules
The new requirements will also apply to N2 and N3 category electric trucks.
From April 2027, traction motors used in these trucks will have to be manufactured in India.
This will cover components including the magnet, rotor, stator, shaft, bearing, enclosure, connector and cable fitment.
For vehicles using an integrated traction motor and transmission system, the rules will go a step further.
Manufacturers will also need to carry out transmission and transmission-controller fitment in India.
Traction motor controllers and inverters will also have to meet deeper localisation requirements, including the assembly of electronic components, semiconductors and connectors on PCBs.
Why Is the Government Increasing Localisation?
The latest move shows that the government wants to go beyond simply assembling electric vehicles in India.
Instead, it is pushing manufacturers to produce critical EV drivetrain technology within the country.
The rules build on the Phased Manufacturing Programme introduced for electric buses and trucks in 2025 and amended later in 2025 and 2026.
With the latest changes, India is taking another step towards building a stronger domestic EV supply chain and reducing reliance on imported critical components.
