India is moving toward higher domestic manufacturing of key electric-vehicle drivetrain components that deliver mechanical power from the electric motor to the driving wheels. The Ministry of Heavy Industries (MHI) has strengthened localisation requirements for EV buses and trucks under the PM Electric Drive Revolution in Innovation Vehicle Enhancement (PM E-DRIVE) initiative.
The new amendments under Phased Manufacturing Programme (PMP) for M2/M3 e-buses and N2/N3 e-trucks will ensure higher local manufacturing of traction, motor controllers and other powertrain-related components from September 1, 2026.
Localisation requirements will also extend to traction-motor controllers, including inverters, from April 1, 2027. The revised requirements include domestic assembly of electronic components, semiconductor devices and connectors directly on printed circuit boards, along with the fitment of high-voltage connectors, cables, heat sinks, enclosures, and software or firmware flashing.
India wants EV manufacturers to source more components locally. However, many traction motors use rare-earth magnets, for which India depends significantly on imports. Export restrictions have disrupted the supply of these magnets. Therefore, SIAM asked the government to extend the September 1, 2026, localisation deadline.
