Delhi’s EV revamp is raising safety and business concerns in the auto industry

Delhi’s EV revamp is raising safety and business concerns in the auto industry

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New Delhi: The Indian capital is experimenting with retrofitting electric vehicles, but the country’s carmakers are not convinced. The recent announcement by the Delhi government of incentives to encourage the adoption of electric vehicles (EV) has opened a can of worms for the Indian auto industry, with major automakers expressing strong reservations, even as startups and independent retrofitters remain eager to capitalize on the opportunity.Under the policy, the first 1,000 vehicles converted from combustion engines to electric powertrains will receive a bonus of 50,000 euros. The initiative aims to reduce vehicle pollution by extending the life of older cars while transitioning them to cleaner powertrains.

Leading automakers, however, don’t seem convinced. Industry executives, speaking on condition of anonymity, said retrofitting electric vehicles poses serious safety and technical issues and is not comparable to previous transitions such as CNG or LPG conversions.

To assureGlobally, only a few automakers, including Toyota, have expressed any support for retrofitting electric vehicles, while most manufacturers express concerns about structural integrity and safety. Retrofitting is also seen as contrary to automakers’ core business model: selling new vehicles. Major EV players Tata Motors, Mahindra & Mahindra and JSW MG Motor declined to comment on detailed email queries sent by ET. A senior official at a car company said: “In CNG or LPG kits, the basic architecture of the vehicle remains unchanged – the fuel system is the only difference.”


Risk assessment needed

“When retrofitting EVs, battery placement, weight distribution, software integration and overall drivability change significantly. This requires engineering at the platform level, which is not possible in a retrofit,” the official added. Auto industry veteran Rajeev Chaba said retrofitting electric cars poses risks that need deeper evaluation. “In electric cars, battery integration, software, range, performance and safety are critical. In a retrofitted vehicle, these parameters cannot be fully optimized,” he said. Most automakers have invested heavily in born-electric platforms designed specifically for electric cars. According to them, retrofitting older vehicles is not technically feasible on a large scale, nor in line with current safety standards.Some see potential

Despite resistance from major automakers, a small group of independent retrofitters believe the segment has potential if supported by policy reforms. Retrofitting is seen as a way to prevent the removal of vehicles already on the roads due to Delhi’s controversial policy that bans petrol vehicles over 15 years old and diesel vehicles over 10 years old from plying on the roads. The reasoning goes that retrofitting electric vehicles would fit into current policy, while ignoring tailpipe emissions in the most polluted city in the world.

Delhi NCR-based Folks Motor is one company active in this segment. Managing director Nikhil Khurana said electric vehicle retrofitting is still not recognized as a separate product category in the Indian auto policy framework. “Unless retrofitting is formally recognised, volumes cannot be scaled. There is no clear GST or regulatory framework,” Khurana said. “The central government’s focus remains on reducing emissions through BS compliant vehicles rather than encouraging retrofits.” Khurana said retrofitting should not be limited to end-of-life vehicles. “Even vehicles that are four to five years old can be converted,” he said, noting that states like Delhi, Maharashtra, Madhya Pradesh and Telangana offer limited incentives for retrofitting.

Pune-based Suma Japanese Technologies is one of the few companies to have received regulatory approval, with 24 certifications from the Automotive Research Association of India (ARAI) for various car models. “There was a proposal to extend FAME incentives to retrofitting electric vehicles, but that was never realized,” said Jayapal G, managing director of Suma Japanese Technologies. “New EVs attract 5% VAT, while retrofitted EVs are taxed at 18%. This makes conversions commercially unviable.”

Industry players are now pushing for policy changes to make EV retrofitting feasible. Their demands include reducing VAT on retrofitted electric vehicles, introducing scrappage-related subsidies, simplifying registration procedures, extending the validity of type-approval certificates from three to five years, and allowing an additional ten-year registration extension for retrofitted vehicles.

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