PM E-DRIVE: Government Tightens Localisation Norms for E-Buses and E-Trucks
New Delhi, September 5, 2026: The Centre has tightened domestic manufacturing requirements for electric buses and electric trucks under the PM E-DRIVE scheme.
The Ministry of Heavy Industries has amended the Phased Manufacturing Programme (PMP) through two new notifications. The move aims to reduce dependence on imports and encourage manufacturing of critical EV drivetrain components in India.
New Localisation Rules for Electric Buses
For M2 and M3 category electric buses, the revised PMP requirements are being introduced in phases.
From September 1, 2026, domestic manufacturing of several traction motor components has been made mandatory, including:
Rotor and stator assemblies
Bearings
Enclosures
Connectors
Cable fittings
From April 1, 2027, the localisation requirements will be expanded to include magnets and shaft fittings.
Motor Controllers and Inverters Also Covered
The government has also laid down stricter localisation requirements for traction motor controllers and inverters.
From April 2027, assembly of electronic components, semiconductors and connectors on printed circuit boards (PCBs) will have to be carried out in India.
The requirements will also cover high-voltage connectors, cables, heatsinks, enclosure fittings and software or firmware flashing.
The revised norms are aimed at deepening India's EV manufacturing ecosystem and increasing domestic value addition in electric buses and trucks.
