Delhi’s EV policy is too ambitious. CNG autos, commercial vehicles will take massive hit

An electric vehicle charging station | Photo: Manisha Mondal | ThePrint | File Photo

The newly-elected BJP government in Delhi has just released the draft of a new electric vehicle policy for the city. The proposals that essentially envisage phasing out fossil-fuel-driven vehicles over the next decade or so have stirred up a hornet’s nest. For example, the draft proposal envisages a rapid shift away from compressed natural gas (CNG) driven auto rickshaws whose permits won’t be renewed from 15 August this year. 

This has led to Indraprastha Gas Limited—the gas distributor in the NCR—seeing its share price drop by 14 per cent over the past five trading sessions, while the rest of the market was on a trampoline ride for other reasons. And if you thought this was a bit extreme, the Delhi government’s proposal to stop registrations of internal combustion two-wheelers from Independence Day next year has sparked utter shock among many manufacturers.

Here is a simple question: Will trying to force the issue work? The Ministry of Road Transport and Highways runs the VAHAN portal, where vehicle registration data is easily accessible. It shows data by calendar year, Delhi saw 4,49,365 two-wheelers registered in 2024, of which 31,545 were electric. Now, here’s the shocking part: in 2023 electric two-wheeler registrations were 37,576, while overall two-wheeler registrations were lower at 4,02,635 units. This means electric two-wheelers dropped from 9.33 per cent of total registrations in 2023 to just 7.02 per cent in 2024.

Impact on commercial vehicles

Part of the reason for the fall in electric vehicle registrations in Delhi—and this trend was visible across both commercial and passenger segments—was the lack of an electric vehicle policy over the past year.  The previous AAP-led government was in limbo. As electric vehicle owners saw their road tax and registration benefits withdrawn, many opted against electric vehicles or registered vehicles in neighbouring states. Meanwhile, nationwide registrations of electric two-wheelers shot up from 8,60,463 units in 2023 to 11,49,453 in 2024. However, despite rapid growth, electric just makes up only 6.07 per cent of the overall two-wheeler market in India which stood at 1,89,24,798 units last year. 

Can Delhi’s policy really work? Falling prices of batteries and improvements in charging infrastructure, especially in urban areas like Delhi, have made electric vehicles easier and crucially cheaper to own than before. The basic Ola S1Z has an ex-showroom price of Rs 59,999, though it comes with limited speed and range. The best-selling electric two-wheeler in India, the Bajaj Chetak, has an ex-showroom price of Rs 1,22,500. In comparison, the best-selling ICE scooter, Honda Activa 125, has an ex-showroom price of around Rs 82,000.

Charging infrastructure is another problem. Anyone driving on Delhi roads will notice several charging bays and battery-swapping stations, designed for two and three-wheelers. However, one has to keep in mind that most owners of such vehicles, even private ones, might not have a dedicated residential parking spot. 

I have argued in past columns that for electric vehicles to be viable, home charging needs to be an option. While this was about passenger cars, the same holds true for two-wheelers. That said, swappable batteries will ease the burden to an extent—but don’t have any illusions, those batteries are heavy. For three-wheelers, especially commercial ones, rapid charging solutions like that developed by Exponent Energy will start to play a bigger role. 

The good news is that Delhi has a largely reliable and resilient electricity network. In several areas, new High Voltage Direct Current (HVDC) supply lines, underground wiring, and upgraded transformers have come up, all of which should be able to handle the increased load from the EVs. 

But what about passenger cars? The Delhi government hasn’t forgotten them. Under the new policy, the third car in every household now must be electric. There’s also a proposal to slap ‘pollution’ fines on passenger cars older than 10 years. Still, the bigger impact could be on commercial vehicles. The Delhi government wants only electric traction for new registrations but the problem is that other than buses, electric traction for medium and heavy commercial vehicles is yet to see any action. The largest EV trucks on sale in India currently range in the 3-4 ton capacity. Forcing commercial vehicles to change, despite many of them running on CNG, a cleaner hydrocarbon than petrol, might have the biggest impact of all.

 

The bright side 

“It’s the right move. I have to break a few eggs to make an omelet. GRAP is a complete failure. It just passes the burden on to local businesses and industries. Delhi Air is toxic and killing its residents, “ Kunal Khattar, founder of AdvantEdge, a green energy and mobility-focused venture capital firm, told me, “Commercial vehicles are just 10 per cent of the car park but consume 70 per cent of fuel. Hence accelerating them to become EV is the right way to go. Hopefully, to achieve this objective focus on PM eDRIVES should also be commercial form factors, infrastructure, energy capacity and not personal mobility like the last two times.”

Few in Delhi want to talk about the new policy. 

 “This is just a draft policy, it is far from being notified, it has some radical proposals but is very utopian in its outlook. I believe there will be changes on the aggressive timelines and on certain proposals as well. After all, that is the idea of a ‘draft policy’”, a senior policy executive at one manufacturer said. 

The draft policy is radical—unlike previous attempts, this one takes two-wheelers into account, even if parts of it are quite utopian. But air quality in the national capital is a problem and road transport does contribute a significant amount to it. We cannot accept an AQI of 200+ as the new ‘normal’. We do need to fix it for our children and ourselves. 

Delhi was the first city in India to implement strict emission norms and move its public transport over to CNG. And while many may not remember, the shift happened almost overnight. This policy might end up being a template for the rest of the country.

@kushanmitra is an automotive journalist based in New Delhi. Views are personal.

(Edited by Ratan Priya)