Top electric bus and truck makers want another relief for rare earth magnets as China plays hardball

New Delhi: India’s leading electric bus and truck makers are planning to ask for a one-year extension on exemptions to import rare earth magnet motors — that are critical for electric vehicles (EVs)—under a central government scheme, three executives directly aware of the development said.According to the executives, who spoke on the condition of anonymity, manufacturers may seek an import relaxation till March 2027 under the ₹10,900-crore PM-E Drive scheme.The earlier deadline for e-trucks and e-buses to switch to locally manufactured rare earth magnet motors was March 2026, which was in turn extended from 1 September 2025.The extension is being sought as supply disruptions persist in imports, while local production of rare earth magnets and alternative motor technologies is expected to take another one to two years.Manufacturers such as Tata Motors, Ashok Leyland, Eka Mobility and Montra Electric are deliberating on sending a request to the ministry of heavy industries (MHI) to extend the import deadline, the executives said.A formal outreach to the government is expected in the next few weeks.

“A formal communication hasn’t been sent to the government yet on this, but discussions are ongoing within Siam (Society of Indian Automobile Manufacturers) for this,” said the first executive.Such a request would suggest that the recent thaw in relations with China has not materially resolved the issues surrounding rare earth magnets, with the country's top automakers still scrambling to find a way out of the crisis eight months after it began in April.The demand for such an extension will come just after the conclusion of the country's largest electric bus tender of 10,900 buses last week which saw companies like PMI Electro