- India mandates phased domestic assembly and manufacturing of key electric truck powertrain components.
- Traction motors, controllers, and integrated motor-transmission systems must be produced locally by September 2026.
The government of India has strengthened domestic manufacturing requirements for electric commercial vehicles through revised policy measures. The India localisation rules for N2 N3 electric trucks were tightened on March 13, 2026, when the Ministry of Heavy Industries amended the Phased Manufacturing Programme (PMP) under the PM E-DRIVE initiative. The change was formalised through Gazette notification S.O. 1331(E), revising key provisions related to traction motors, integrated propulsion systems, and electronic control components used in medium and heavy electric trucks.
Phased localisation requirements for electric truck powertrains
The updated PMP framework modifies items 8, 9, and 10 of the localisation roadmap, targeting critical electric powertrain components. Beginning September 1, 2025, integrated traction motor–transmission systems, associated controllers, and software flashing operations must be assembled domestically. This step aims to shift core propulsion system integration activities into local facilities while gradually reducing reliance on imported subsystems for electric truck platforms operating in the N2 and N3 categories.
Full domestic manufacturing mandate by 2026
From September 1, 2026, the policy escalates localisation requirements further by mandating domestic manufacturing of traction motors, integrated motor–transmission units, and traction motor controllers. The rule extends beyond final assembly to include printed circuit board–level electronics and semiconductor assemblies used in controller systems.
Focus on critical electronics and propulsion components
By requiring local production of both mechanical propulsion units and electronic control systems, the revised programme seeks to build a deeper industrial ecosystem for heavy electric vehicles. The measure is expected to strengthen supply chains, encourage component manufacturing investment, and accelerate domestic capability development in high-value electric truck technologies.
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