NEW DELHI: The heavy industries ministry has proposed new localization rules for e-ambulances under the ₹10,900 crore PM E-drive scheme, allowing manufacturers to import traction motors fitted with rare earth magnets till 3 March 2026, the ministry said in response to Mint’s email query.
The draft phased manufacturing programme (PMP) for e-ambulances, a copy of which was reviewed by Mint, proposed that battery management systems, DC-DC converters and traction motors fitted with rare earth magnets can be imported till 3 March 2026. The draft indicated that the government wants heating, ventilation and air-conditioning (HVAC) systems, charging inlets, electric compressors for brakes, traction battery packs and vehicle control units to be sourced domestically.
The ministry plans to take inputs from stakeholders on the draft PMP for e-ambulances, it said in its response to Mint’s query.
“E-ambulances are the newest segment in India’s EV transition, and it is understandable that OEMs (original equipment manufacturers) have been cautious in committing to localization due to an uncertain demand outlook,” said Amit Bhatt, India director of the International Council on Clean Transportation, a global think tank. “A staggered phased manufacturing programme… provides manufacturers with adequate time to build their supply chains while simultaneously creating a clearer market trajectory that can encourage domestic manufacturing.”
Earlier localization rules for e-trucks under the PM E-Drive scheme, notified on 10 July this year, required manufacturers to stop imports of rare earth magnet-laden traction motors for N2 category of e-trucks (those with a gross vehicle weight of between 3.5 tonnes and 12 tonnes) by 1 September 2025, a deadline that was extended to 1 March 2026.
The government has allocated ₹500 crore to incentivize electric and hybrid ambulances under the PM E-Drive scheme, the first instance of sops for such vehicles. India had about 190,000 ambulances in December 2024, the road transport and highways ministry said in parliament.
Maruti, Force Motors
Mint reported earlier that the government was assessing demand and calculating incentives for electric and hybrid ambulances, which are yet to operate on Indian roads. Maruti Suzuki India Ltd and Force Motors Ltd are among the companies that have committed to building hybrid and electric ambulances, respectively, for incentives under the PM E-Drive scheme.
The companies did not respond to Mint’s request for comment on 2 December.
However, securing traction motors for e-ambulances may be a challenge because Chinese export controls have led to critical supply challenges. Rare earth permanent magnets are foundational to electric motors, with India’s annual demand for these magnets to be about 5,000 tonnes.
China stopped exporting rare earth magnets in April, sending manufacturers across the globe into a frenzy. While some selective supplies have begun, the Indian government has temporarily allowed electric truck and bus makers to import traction motors fitted with rare earth magnets.
India has also opted to incentivize domestic magnet manufacturing and become self-reliant with a ₹7,280 crore scheme that the union cabinet approved on 26 November. The scheme envisions the setting up of five plants to make 6,000 tonnes of magnets every year.
Experts said electric ambulances have been deployed in countries such as the UK and China as well as nations in North America and Central Asia. Since ambulances operate 120-200 km each day, they make a good use-case for electrification.
“This almost equates to the taxi service in a large city. With higher utilization rate, fuel consumption and emissions are on the higher side. It, therefore, becomes a viable use case for deploying electric ambulances,” said Sharif Qamar, associate director of transport and urban mobility at The Energy and Resources Institute.