With rare-earth supply strains persisting, India’s electric bus and truck makers seek a one-year extension to import critical motors, hoping to protect tenders and keep EV rollouts on track.
India’s electric bus and truck manufacturers are reportedly preparing to request a further extension of the deadline for localising rare-earth magnet motors used in electric vehicles (EVs).
According to a Mint report, industry executives said companies plan to seek permission to continue importing these critical components until March 2027 under the government’s ₹109 billion PM-E Drive scheme. The current deadline is March 2026, already pushed back from the earlier target of 1 September 2025.
Senior industry officials anonymously said firms are struggling with supply disruptions and uncertainties surrounding rare earth magnets, most of which are sourced from China. Domestic production capacity for rare earth magnets and alternative motor technologies is still developing and is expected to take another one to two years to stabilise.
Companies such as Tata Motors, Ashok Leyland, PMI Electro Mobility, Eka Mobility and Montra Electric are likely to support the extension request, which will be submitted to the Ministry of Heavy Industries after internal consultations.
The industry body SIAM is currently discussing the proposal, and a formal response is expected soon. Executives say the situation highlights that, despite recent diplomatic easing with China, the rare-earth magnet supply challenge remains unresolved. The sector continues to feel the impact of disruptions that began in April this year.
The proposed extension comes just after India concluded its largest electric bus tender, awarding orders for 10,900 buses last week. Manufacturers warn that continued import restrictions could delay execution of these contracts and create order backlogs.
Companies also emphasise that switching to new suppliers or redesigning motors is not a straightforward process due to technical and certification complexities.
