Govt Tightens E-Bus and E-Truck Localisation Rules, Sets April 2027 Deadline

The Ministry of Heavy Industries issued two notifications on September 3 covering M2/M3 electric buses and N2/N3 electric trucks. The updated Phased Manufacturing Programme (PMP) will take effect after publication in the Official Gazette.

What Are the New Localisation Rules for E-Buses?

For electric buses, manufacturers must locally make key traction motor components from September 1. These include the rotor and stator assembly, bearing, enclosure, connectors and cables. However, the rules will become stricter from April 1, 2027. Manufacturers will also need to carry out magnet and shaft fitment in India.

Local Manufacturing Rules for Motor Controllers

The government has also increased localisation requirements for traction motor controllers and inverters. From April 2027, manufacturers must assemble electronic components, semi conductors and connectors on printed circuit boards in India. In addition, local manufacturing must cover high-voltage connectors, cables, heatsinks and enclosures. Software or firmware flashing will also form part of the required local process.

What Changes for E-Trucks?

Similar rules will apply to N2 and N3 electric trucks from April 2027. Manufacturers will need to locally make or fit key e-truck traction motor components, including the magnet, rotor, stator, shaft, bearing, enclosure, connectors and cables. For integrated traction motor and transmission systems, the rules will also cover transmission and transmission-controller fitment.

Govt Pushes Deeper EV Localisation

The latest changes build on the Phased Manufacturing Programme (PMP) introduced for electric buses and trucks in 2025 and amended in 2025 and 2026.

Overall, the government is moving beyond basic vehicle assembly. It now wants manufacturers to produce more critical electric drivetrain components in India. In addition, the April 2027 deadline gives manufacturers time to prepare for stricter EV localisation requirements.

The move could also support greater domestic production of electric commercial vehicle components, including those used in e-buses and e-trucks.