DELHI’S EV RETROFITTING PUSH DIVIDES AUTO INDUSTRY OVER SAFETY, BUSINESS RISKS - ALL YOU NEED TO KNOW

India’s capital is testing the waters with EV retrofitting, but the move has divided the auto industry. The Delhi government’s incentive push has energised startups and independent retrofitters but leading carmakers remain unconvinced and have voiced strong concerns, The Economic Times reported.

Under the policy, the first 1,000 vehicles converted from internal combustion engines to electric powertrains will be eligible for an incentive of Rs 50,000. The move seeks to curb vehicular pollution by prolonging the life of older cars while shifting them to cleaner mobility solutions.

However, India's leading automobile manufacturers appear unconvinced. The Economic Times quoted some industry executives, who requested anonymity as saying that EV retrofitting poses significant safety and technical challenges and cannot be equated with earlier fuel transitions such as CNG or LPG conversions.

Concerns and demands

Globally, only a handful of automakers, such as Toyota, have shown limited openness to EV retrofitting, while most manufacturers point to risks around structural integrity and safety. The practice is also viewed as clashing with automakers’ core business of selling new vehicles.

"In CNG or LPG kits, the basic architecture of the vehicle remains unchanged -- the fuel system is the only difference. In EV retrofitting, battery placement, weight distribution, software integration and overall drivability change significantly. This requires platform-level engineering, which is not possible in a retrofit," The Economic Times quoted a senior official of a car company.

Despite large automakers being resistant, a small group of independent retrofitters sees potential in the segment if backed by supportive policy reforms.

Policy changes to make EV retrofitting viable are now pushed by industry players. GST reduction on retrofitted EVs, introduction of scrappage-linked subsidies, simplifying registration procedures, extending the validity of type approval certificates from three to five years and granting an additional 10-year registration extension to retrofitted vehicles are among their top demands.

While passenger car retrofitting has struggled to gain momentum, conversions are picking up in the commercial vehicle segment, especially for load carriers, where safety norms are less stringent and cost benefits are more evident.

Delhi among top three in EV penetration

Delhi ranked third among states and Union territories in adopting electric vehicles, with EV penetration in the national capital reaching 11.6 per cent in the financial year (FY) 2024-25, according to a study.

Delhi's EV adoption is spread across multiple segments, including two-wheelers, three-wheelers and public transport, unlike several states where electrification is largely limited to three-wheelers, PTI quoted the study.

At the national level, electric vehicle penetration stood at 7.49 per cent but adoption varied widely across states, highlighting the role of local incentives and clear policy targets in driving faster uptake, according to PTI.

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2026-01-18T13:35:29Z