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The Ministry of Heavy Industries has revised the Phased Manufacturing Programme (PMP) for M2/M3 electric buses under the PM E-DRIVE Scheme. The change has been issued through S.O. 4884(E), dated 3 September 2026, and it deals specifically with the manufacturing of traction motors used in the covered e-buses.
The amendment does not introduce a new licence or application procedure. Its focus is much narrower: certain traction motor manufacturing activities must be carried out domestically. The Gazette sets one list of activities for the first phase and then adds two more operations from 1 April 2027.
For e-bus manufacturers, traction motor suppliers and EV component businesses, the real question is whether their present manufacturing arrangement matches the revised PMP and whether suppliers will be ready for the next stage.
| Particular | Details |
| Issuing Authority | Ministry of Heavy Industries |
| Notification | S.O. 4884(E) |
| Date | 3 September 2026 |
| Scheme | PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme |
| Programme | Phased Manufacturing Programme for e-buses |
| Vehicle Category | M2/M3 e-buses |
| Component Changed | Traction Motor |
| PMP Entry | Sr. No. 8 |
| First Phase | 1 September 2026 |
| Second Phase | 1 April 2027 |
| Main Change | Expansion of domestic traction motor manufacturing activities |
The key change is straightforward. Six specified fitment operations appear in the first phase. From April 2027, magnet fitment and shaft fitment are added to those operations.
The latest amendment is part of an existing scheme and should not be read as a completely new framework.
PM E-DRIVE Scheme
The PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, commonly called PM E-DRIVE, was notified by the Ministry of Heavy Industries through S.O. 4259(E) dated 29 September 2024.
PMP for E-Buses
The Phased Manufacturing Programme for e-buses was later notified through S.O. 1078(E) dated 3 March 2025.
The Ministry subsequently made changes through:
The latest notification, S.O. 4884(E), further changes Sr. No. 8 of the PMP, which deals with the traction motor.
For manufacturers, this means the current requirement should be checked against the latest amended PMP rather than an older version of the programme.
The PMP sets manufacturing conditions for identified components used in the e-buses covered by the scheme.
The word “phased” matters here. The manufacturing requirement does not remain the same throughout the programme. Different operations may be brought within the domestic manufacturing requirement at different stages.
In the present amendment, that phased approach is visible in the traction motor requirement.
The first stage lists six activities. The next stage keeps those activities and adds two more.
The Gazette does not amend every e-bus component through this notification. It changes only the entry dealing with the traction motor.
The amendment changes the minimum manufacturing activities that need to be performed domestically for traction motors.
The main changes are:
For manufacturers, this means the first-stage setup will not be enough once the second phase begins. Businesses will need to check whether their traction motor manufacturing process also covers magnet fitment and shaft fitment from 1 April 2027. This may require a review of existing production arrangements, supplier capabilities and the location where these activities are carried out.
The Gazette specifically refers to e-buses falling under the M2/M3 categories.
The notification should not be treated as a general traction motor rule for every electric vehicle sold or manufactured in India.
It does not, by itself, extend the revised requirement to:
A manufacturer should first check whether its vehicle and manufacturing activity fall within the relevant e-bus PMP before applying the amended requirement.
Traction motor manufacturing is the heart of this amendment. The requirement is divided into two stages.
Requirements from 1 September 2026
The first phase states that traction motor manufacturing must at least include certain operations performed domestically.
These are:
1. Rotor Assembly Fitment
The rotor assembly has to be fitted into the motor domestically.
The notification talks about the fitment activity. It does not say, through this amendment alone, that the rotor assembly itself must necessarily be manufactured in India.
2. Stator Assembly Fitment
The stator assembly must also be fitted into the motor domestically.
This is another production-stage requirement rather than a general statement on the origin of every material used in the stator.
3. Bearing Fitment
Fitting of bearings is included in the minimum domestic manufacturing operations of the traction motor.
4. Enclosure Fitment
The motor enclosure must be fitted domestically as part of the specified manufacturing process.
5. Connector Fitment
Connector fitment is also included in the first-stage requirement.
6. Cable Fitment
The listed domestic manufacturing operations also include cable fitment.
These six activities make up the first-stage list given in the Gazette.
Additional Requirements from 1 April 2027
The requirement becomes wider from 1 April 2027.
Two more manufacturing activities enter the minimum domestic process:
Magnet Fitment
Magnet fitment is added from April 2027. Manufacturers and suppliers should therefore check where this operation currently takes place and whether their manufacturing arrangement will meet the later-stage requirement.
Shaft Fitment
Shaft fitment is the second additional operation. Like magnet fitment, it becomes part of the listed domestic traction motor manufacturing activity from April 2027.
The six earlier operations continue to appear in the requirement. They are not replaced.
| Traction Motor Activity | From 1 Sept 2026 | From 1 Apr 2027 |
| Magnet fitment | Not listed in this phase | Required |
| Rotor assembly fitment into motor | Required | Required |
| Stator assembly fitment into motor | Required | Required |
| Shaft fitment | Not listed in this phase | Required |
| Bearing fitment | Required | Required |
| Enclosure fitment | Required | Required |
| Connector fitment | Required | Required |
| Cable fitment | Required | Required |
The difference is limited but important.
The first phase has six listed fitment operations. The second phase has eight. Magnet fitment and shaft fitment are the two additions.
For a business already carrying out all eight operations domestically, the April 2027 stage may require little operational change. A supplier that currently carries out magnet or shaft fitment outside India may need to review its production arrangement.
There is a date-related issue in the notification that deserves attention.
S.O. 4884(E) is dated 3 September 2026, and paragraph 2 states that the amendment takes effect from the date of publication in the Official Gazette.
The table, however, states:
“With effect from 1st September 2026” for the first traction motor manufacturing requirement.
The notification does not explain the difference between these two dates.
Businesses should therefore avoid making their own assumptions about how the period between 1 September and 3 September should be treated.
Where this timing affects production records, eligibility or scheme-related compliance, the wording should be reviewed carefully, and clarification may be appropriate.
A simple way to read the amendment is to separate the two stages.
First Stage
The listed domestic operations are:
Second Stage
From 1 April 2027, the list becomes:
One distinction should remain clear.
The notification requires these manufacturing activities to be performed domestically. It does not state in this amendment that every individual material, subcomponent, or input used in the traction motor has to be produced in India.
It also does not prescribe a domestic value-addition percentage in S.O. 4884(E).
The amendment may look small on paper, but manufacturers need to connect the wording with their actual production chain.
Manufacturing Process Mapping
OEMs should know where the relevant traction motor activities are carried out.
If the traction motor comes from an external supplier, the OEM may need more information than a simple purchase invoice or supplier declaration. The business should understand the manufacturing chain well enough to identify where the listed operations happen.
Supplier Capability
April 2027 is particularly relevant.
Though a provider that is capable of performing rotor, stator, bearing, enclosure, connector, and cable fitment is not always capable of doing magnet and shaft fitment.
That gap should be identified before the later phase begins.
Procurement Decisions
Price, delivery schedule, and technical specification will continue to matter, but the location of manufacturing operations may also become relevant when selecting traction motor suppliers under the applicable PMP.
Procurement teams may therefore need to work more closely with production and compliance teams.
Vendor Agreements
Businesses may also choose to review supplier agreements so that responsibility for specific manufacturing operations is clearly understood.
The Gazette itself does not order companies to amend contracts. Contract review is simply a practical way to reduce uncertainty where production is outsourced.
The amendment is even more relevant for businesses that manufacture or assemble traction motors for e-bus OEMs.
A supplier should know exactly which operations are being done at each facility.
Areas that may need attention include:
Production Capability
The current production line should be checked against both phases of the PMP requirement.
Magnet Fitment Readiness
If magnet fitment is currently carried out outside India or by another supplier, the business may need to examine how the April 2027 requirement will be met.
Shaft Fitment Readiness
The same review should be carried out for shaft fitment.
Manufacturing Responsibility
Where several suppliers or facilities are involved, responsibility for each operation should be clearly mapped.
Production Records
Clear internal records can help a business understand and demonstrate its own manufacturing arrangement.
S.O. 4884(E) does not provide a separate mandatory document list, so businesses should not treat general record recommendations as a new statutory filing requirement.
The amendment may change the way e-bus manufacturers look at traction motor sourcing.
A supplier may offer a technically suitable product, but manufacturers also need to understand where the specified fitment work takes place.
This can make the following areas more relevant:
The amendment should not be stretched beyond its wording.
It does not say that imported material is completely prohibited. It says that the identified traction motor manufacturing activities must be performed domestically.
That is the point manufacturers should map against their supply chain.
Businesses do not need to wait until the second phase begins to check readiness.
1. Map the Existing Traction Motor Process
List the traction motor operations and identify where each one is carried out.
2. Check Magnet Fitment
Determine if magnet fitment has been done domestically. If it is not, identify what change may be required before April 2027.
3. Check Shaft Fitment
Carry out the same exercise for shaft fitment.
4. Speak to Suppliers
Do not assume that a supplier's overall Indian presence means every relevant operation takes place domestically.
Ask where the prescribed operations are actually carried out.
5. Check Production Responsibility
If more than one facility is involved, identify which unit handles each manufacturing stage.
6. Organise Internal Records
Keep supplier, manufacturing, and production information in a form that can be checked internally when needed.
7. Review the Latest PMP
Older supplier assessments or manufacturing plans should be compared with the latest applicable amendment.
A few reading or planning mistakes can create avoidable problems.
Using Only the First-Phase List
From April 2027, businesses should not continue treating the six earlier activities as the complete list.
Missing Magnet Fitment
Magnet fitment becomes part of the specified domestic manufacturing activity in the second phase.
Missing Shaft Fitment
Shaft fitment is also added from April 2027.
Assuming Where Manufacturing Happens
A supplier's registered office or sales location does not necessarily tell a manufacturer where a particular production operation takes place.
Applying the Notification to Every EV
S.O. 4884(E) deals with the PMP for M2/M3 e-buses. It should not automatically be applied across unrelated EV categories.
Treating “Domestic Manufacturing” Too Broadly
The notification identifies manufacturing operations that must be performed domestically. It does not state that every raw material and component must automatically be Indian-made.
Ignoring the Date Difference
The wording relating to Gazette publication and the 1 September 2026 date should be reviewed rather than silently treated as the same thing.
Yes, but in a specific sense.
The number of identified manufacturing operations required to be carried out domestically increases from six in the first phase to eight in the second.
Magnet and shaft fitment are brought into the domestic manufacturing requirement from April 2027.
That represents a deeper level of local manufacturing activity at the traction motor assembly stage.
However, the notification does not state:
Those claims should not be added to the notification.
It can have elements of both.
Where Manufacturers May Benefit
More manufacturing operations being carried out domestically can support local traction motor assembly capability.
Indian motor and component manufacturers that already handle magnet fitment, shaft fitment, and related assembly work may become more relevant to OEM sourcing decisions.
OEMs may also gain better visibility over how and where their traction motors are assembled.
Where Businesses May Face Difficulty
The amendment can require changes where a company currently relies on overseas facilities for one of the added operations.
Possible adjustments may involve:
This will largely be influenced by the current production system of the company.
Practical View
A business that already performs all the listed operations domestically may need little adjustment.
A business whose manufacturing chain does not cover magnet or shaft fitment domestically may have more work to do before April 2027.
That is why the real burden of the amendment cannot be judged in the same way for every manufacturer.
The revised PMP may also create room for Indian manufacturers that can support traction motor production.
Possible opportunity areas include:
Traction Motor Assembly
Businesses with motor assembly capability may become useful manufacturing partners for e-bus OEMs and motor suppliers.
Magnet Fitment
The addition of magnet fitment from April 2027 can increase the relevance of domestic facilities capable of carrying out this work.
Shaft Fitment
Suppliers equipped for shaft fitment may also find new B2B opportunities.
Component Assembly Support
Businesses specialising in rotor, stator, bearing, enclosure, connector or cable fitment can become part of a larger traction motor manufacturing chain.
Contract Manufacturing
OEMs or motor suppliers that do not want to build every capability in-house may examine domestic contract manufacturing arrangements.
These are potential commercial effects of the amendment. The notification does not guarantee any particular volume of business or revenue.
E-bus manufacturers and traction motor suppliers should focus on a few practical checks:
Manufacturing compliance becomes harder when a regulatory condition has to be matched with an actual factory process, supplier chain, and technical setup. Corpseed can support e-bus OEMs, traction motor manufacturers, and EV component suppliers that need help reviewing their position under the applicable PMP.
Businesses looking for an EV manufacturing compliance consultant can use Corpseed's support for regulatory review, manufacturing compliance assessment, and documentation planning.
PM E-DRIVE Applicability Review
Corpseed can help examine whether a particular e-bus, component, or manufacturing arrangement falls within the relevant PM E-DRIVE and PMP requirements.
PMP Compliance Assessment
Existing manufacturing activities can be mapped against the applicable phased requirement.
This can help identify whether the business already meets the relevant stage or whether some operations need further attention.
Traction Motor Compliance Review
Corpseed can assist with reviewing the manufacturing setup for:
The review should remain tied to the actual PMP wording and the business's manufacturing arrangement.
Supplier and Manufacturing Documentation Review
Where production involves multiple suppliers, Corpseed can assist businesses in organising manufacturing information and identifying gaps in supplier documentation.
April 2027 Readiness Assessment
Manufacturers that need to prepare for the second phase can use PM E-DRIVE compliance support to review whether magnet and shaft fitment arrangements are ready before the applicable date.
EV Component Regulatory Support
Corpseed's EV manufacturing compliance services can also support manufacturers dealing with other applicable regulatory requirements connected with their EV components and production activities.
Compliance Gap Assessment
A gap assessment can compare the present manufacturing setup with the applicable PMP requirements and highlight areas that need further review.
For e-bus OEMs and component suppliers, working with an EV regulatory consultant or automotive compliance consultant can be useful when several manufacturing locations, suppliers, or scheme conditions need to be checked together.
Corpseed can provide help to the business sector through its practical manufacturer compliance service and PMP regulatory assessment without considering the Gazette as mere paperwork.
The Ministry of Heavy Industries has amended Sr. No. 8 of the e-bus PMP through S.O. 4884(E) dated 3 September 2026. The affected component is the traction motor used for M2/M3 e-buses.
Six traction motor fitment operations are listed for the first stage. From 1 April 2027, magnet fitment and shaft fitment are added, taking the listed operations to eight.
Manufacturers should pay particular attention to where these operations are performed, whether their suppliers are ready for the second phase, and how the date wording in the Gazette applies to their specific case.
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