Relief for Rare Earth Magnet Rules in Electric Trucks and Buses

By Jony Shekhawat | Published Date : September 15, 2025

Temporary relief for electric vehicle makers ensures smooth production of electric trucks and buses amid rare earth magnet shortages.

India is helping makers of electric trucks and electric buses. The government may relax rules on rare earth magnets under the PM E-Drive scheme. For these electric commercial vehicles, magnets are a compulsory part and Govt. takes this step because of supply shortage. It aims to keep production running without problems.

PM E-Drive Boosts Electric Trucks and Buses

Table Of Contents

1. PM E-Drive Boosts Electric Trucks and Buses

2. Why Rare Earth Magnets Are Important?

3. What the Government Plans

4. Reaction from Industry

5. Temporary Nature of the Rule

6. Looking Ahead

7. Conclusion

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India’s push for electric mobility might get a temporary boost. According to two officials familiar with the matter, the Ministry of Heavy Industries is considering letting makers of electric trucks and buses bring in traction motors that already have rare earth magnets installed. This move would allow them to continue enjoying incentives under the Rs 10,900-crore PM E-Drive scheme.

Why Rare Earth Magnets Are Important?

Using these rare earth magnets (neodymium and dysprosium) makes electric truck and electric bus motors powerful and efficient. India imports most of these magnets from China. Recently, export restrictions and supply issues caused a shortage. This slowed down the production of electric trucks and buses.

What the Government Plans

The Ministry of Heavy Industries may let manufacturers import ready-made motors with rare earth magnets. Normally, the PM E-Drive scheme asks that parts be made in India to get incentives. This temporary relief will let companies import motors without losing benefits.

Reaction from Industry

Automakers are happy with this plan. Tata Motors and other electric truck and bus makers said delays in magnet supply could slow factories. Imported motors will help them keep production on track, manage costs, and supply electric trucks and buses on time.

Temporary Nature of the Rule

This relief is temporary. The government will review it once the magnet supply improves. The aim is to handle short-term needs while still working toward long-term self-reliance and a stronger electric vehicle sector.

Looking Ahead

India also wants to make more rare-earth magnets at home. Plans are being made to support local manufacturing. This will reduce imports and strengthen India’s place in the global electric truck and bus market.

Conclusion

The temporary relief under PM E-Drive is practical. It keeps electric trucks and buses moving while India works to produce rare earth magnets locally. This step helps manufacturers meet demand and supports the country’s goal of sustainable transport.

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Frequently Asked Questions on Electric Vehicles

Q1. What is an electric bus and how does it work?

Ans. An electric bus runs on electricity stored in batteries instead of fuel. The batteries power an electric motor that drives the wheels, producing zero emissions while transporting passengers.

Q2. How long does it take to charge an electric bus?

Ans. Charging time depends on battery size and charger type. Fast chargers can charge a bus in 2–4 hours, while slower chargers may take 6–8 hours.

Q3. Are electric trucks more cost-effective than diesel trucks?

Ans. Electric trucks have higher upfront costs, but lower running and maintenance costs. They save money on fuel and reduce emissions, making them more cost-effective over time.

Q4. Can electric buses operate in extreme weather conditions?

Ans. Yes, modern electric buses are designed to operate in hot, cold, and humid conditions. Battery management systems help maintain performance even in extreme climates.

Q5. What is the range of a typical electric bus?

Ans. Most electric buses have a range of 150–300 kilometers on a full charge, depending on load, terrain, and battery capacity.

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