The Indian government has introduced a crucial flexibility for manufacturers of electric ambulances, permitting them to import a key component amidst global supply chain challenges. The Ministry of Heavy Industries has proposed a draft phased manufacturing programme (PMP) that will allow the import of traction motors fitted with rare earth magnets until 3 March 2026. This move is part of the broader ₹10,900 crore PM E-Drive scheme aimed at accelerating India's electric vehicle transition.
Details of the Draft Manufacturing Plan
According to the draft proposal, which was reviewed in response to a query, the government has outlined a staggered approach to localisation for e-ambulances. While imports of battery management systems, DC-DC converters, and the crucial traction motors with rare earth magnets will be permitted until the March 2026 deadline, several other components must be sourced domestically from the outset.
The components mandated for local procurement include heating, ventilation and air-conditioning (HVAC) systems, charging inlets, electric compressors for brakes, traction battery packs, and vehicle control units. The ministry has stated it will seek inputs from stakeholders on this draft PMP before finalisation.
Addressing Supply Challenges and Market Uncertainty
Industry experts have welcomed this calibrated approach. Amit Bhatt, India director at the International Council on Clean Transportation, noted that e-ambulances represent a new segment with an uncertain demand outlook, leading to manufacturer caution. "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," Bhatt explained.
The government has allocated ₹500 crore specifically to incentivize electric and hybrid ambulances under the PM E-Drive scheme, marking the first time such vehicles are eligible for subsidies. This is significant given India's fleet of approximately 190,000 ambulances as of December 2024.
Global Context and Domestic Push for Self-Reliance
The decision to allow imports of motors with rare earth magnets is particularly timely given critical supply constraints. China's decision to halt exports of rare earth magnets in April created a global scramble. These magnets are foundational for high-performance electric motors, with India's annual demand estimated at around 5,000 tonnes.
In a parallel push for self-reliance, the Union Cabinet recently approved a ₹7,280 crore scheme to boost domestic magnet manufacturing. The plan envisions setting up five plants capable of producing 6,000 tonnes of magnets annually. This initiative complements the temporary import allowance, providing a bridge while domestic capacity is built.
Major automotive players like Maruti Suzuki India Ltd and Force Motors Ltd have already committed to building hybrid and electric ambulances to avail of the scheme's incentives. The operational logic for electrifying ambulances is strong, as highlighted by Sharif Qamar of The Energy and Resources Institute. Given that ambulances typically run 120-200 km daily, similar to taxi services in large cities, their high utilisation makes them a viable and impactful candidate for electrification, reducing both fuel consumption and emissions.
This policy framework for e-ambulances follows a similar pattern set for e-trucks under the same scheme, where import deadlines for motors were also extended to March 2026. The government's strategy appears to balance immediate supply needs with a clear, long-term roadmap for indigenisation, aiming to strengthen the domestic EV ecosystem while ensuring the rollout of critical emergency vehicles.
