Advancing electric trucking, Indian manufacturers gain relief as the government relaxes localisation norms to unlock incentive schemes.
India’s push to electrify its heavy-duty trucking ecosystem has gained momentum as major manufacturers, including Tata Motors, the Murugappa Group’s IPLTech Electric, and VE Commercial Vehicles (VECV), prepare to leverage upcoming incentives for electric trucks. The development follows the government’s relaxation of localisation requirements under the Production-Linked Manufacturing of Electric Vehicles (PM-E Drive) scheme, according to an industry update published on Monday.
Under the policy change, truckmakers will be allowed to temporarily import electric motors using rare earth magnets, easing a major supply bottleneck that had slowed progress. The relaxation, which took effect on 30 September, aims to accelerate deployment of electric trucks and electric buses while supporting scale production and encouraging domestic capability development.
Industry executives say the move is expected to help manufacturers meet the scheme’s deadline of March 2026, when localisation compliance becomes mandatory. The heavy commercial vehicle segment, responsible for nearly one-third of transport-sector emissions despite comprising just 3% of India’s vehicle population is seen as a critical target for electrification to meet national climate goals.
VECV welcomed the decision, noting that the improved access to EV components will support logistics decarbonization and enable large fleet testing. Tata Motors and IPLTech are also expected to intensify development work as government nod for extended incentives is anticipated.
The approval process for test deployments of e-trucks across multiple states is underway, marking a key milestone for India’s transition to clean freight mobility.
