New Delhi, July 29 -- Indian manufacturers of electric trucks and electric buses may seek another extension of exemption from localization rules under the Rs.10,900 crore PM E-Drive scheme due to the continuing unavailability of locally made rare earth magnets, according to two people aware of the development and a document reviewed by Mint.

If granted, the exemption would be the third such waiver since localization rules were announced in March 2025. However, China halted the supply of these magnets in April 2025 in retaliation for US tariffs, disrupting the manufacturers' plans because they could not claim incentives on importing sub-assemblies of these magnet-laden motors, as allowed in the original localization rules.

Six-month exte...