The Ministry of Heavy Industries (MHI) has amended the Phased Manufacturing Program (PMP) requirements for electric buses and electric trucks under the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE), mandating domestic manufacturing of key electric vehicle (EV) components.

The amendments were issued through two notifications.

The first order introduces an amendment to the PMP requirements applicable to electric buses in the M2 and M3 categories. Under the revised requirement, traction motors used in M2- and M3-category electric buses must be manufactured domestically as of September 1, 2026.

The domestic manufacturing requirement mandates that several key processes be performed in India. These include magnet fitment, rotor assembly fitment into the motor, stator assembly fitment into the motor, shaft fitment, bearing fitment, enclosure fitment, connector fitment, and cable fitment.

The Ministry has also amended the PMP requirements for electric trucks in the N2 and N3 categories under the PM E-DRIVE program. The amendment revises the localization requirements for traction motors, traction motors integrated with transmission systems, and traction motor controllers, including inverters.

For traction motors used in N2 and N3 electric trucks, domestic manufacturing will be mandatory as of September 1, 2026. The manufacturing process must include magnet fitment, rotor assembly fitment into the motor, stator assembly fitment into the motor, shaft fitment, bearing fitment, enclosure fitment, connector fitment, and cable fitment.

For traction motors integrated with transmission systems, the program follows a phased localization approach. Domestic assembly of integrated traction motor and transmission systems, traction motor controllers, transmission controllers, and software flashing has been mandatory since September 1, 2025.

From September 1, 2026, the localization requirement will deepen to require domestic manufacturing of traction motors and transmissions. This includes magnet fitment, rotor assembly fitment, stator assembly fitment, shaft fitment, bearing fitment, enclosure fitment, connector fitment, cable fitment, transmission fitment, and transmission controller fitment.

The rules also require local manufacturing of traction motor controllers, including inverters, which has been mandatory since September 1, 2025. Domestic manufacturing must include the integration of printed circuit board assemblies, high-voltage connector fitment, cable fitment, heat-sink fitment, enclosure fitment, and software or firmware flashing.

Beginning September 1, 2026, manufacturers will also be required to assemble electronic components, semiconductors, and connectors directly on the printed circuit board. For N3 category electric trucks that do not use integrated transmission systems, the same domestic manufacturing requirements for traction motor controllers will apply.

In January this year, MHI notified amendments to the Production-Linked Incentive program for the automobile and auto components industry.

In October last year, MHI notified operational guidelines for deploying electric vehicle public charging stations under PM E-DRIVE.