65% buyers at risk, China reliance: Industry against Delhi’s 2028 petrol two-wheeler ban proposal
As per Delhi’s proposed Electric Vehicle policy 2.0, only electric two-wheelers will be permitted for new registrations in the city from April 2028
Industry representatives also questioned the net environmental benefit of EV adoption at current energy mix levels. They pointed out that around 71% of India’s electricity comes from coal-based power generation (fossil fuels).
The Delhi government’s proposed ban on the registration of new Internal Combustion Engine (ICE) two-wheelers from April 2028 has drawn sharp opposition from manufacturers and stakeholders, who said it would upend a market that accounts for roughly 65% of two-wheeler buyers — many of whom depend on such vehicles for their livelihoods — The Indian Express has learnt.
They also argued that India’s still-import-dependent battery and rare-earth supply chains, heavily reliant on China, are not yet equipped to support a transition at this scale, sources said.
As per the proposed Electric Vehicle (EV) policy 2.0, only electric two-wheelers will be permitted for new registrations in Delhi from April 2028. Similarly, CNG autos will be banned from January 2027. The government had released the draft policy for suggestions and feedback from the public on April 11; the window will close in three days. Once implemented, it will be valid till 2030. Currently, the existing policy has been extended till June 30.
Officials said the Transport department is holding consultation meetings with stakeholders and Original Equipment Manufacturers (OEMs) to discuss feedback and suggestions before implementing the policy. Officials said top industry bodies, including SIAM (Society of Indian Automobile Manufacturers) have raised concerns over the EV mandates proposed by the government to phase out ICE two-wheelers.
Little time to adapt
Sources said the two-wheeler industry, in its communication, said “a mandate prohibiting ICE vehicles, would be counter-productive, potentially undermining consumer welfare and broader economic stability”.
It also pointed out that it would leave 65% of consumers in the lurch.
“… for 65% of consumers who today buy a motorcycle (most of whom are common citizens, for whom, this is an enabler of earning livelihood), there would not be a suitable option available for personal mobility,” read the communication submitted to the government, urging the government to review the draft policy.
Livelihood concerns for everyday users
Stakeholders described two-wheelers as an economic lifeline to many rather than just a vehicle.
“Delhi-NCR is home to 300 independent workshops, approximately 10,000 mechanics, these micro-entrepreneurs will not be able to upgrade themselves so rapidly and not all would be able to afford the specialised diagnostic software or high-voltage safety equipment required for electric vehicles,” experts said, as per the communication.
Manufacturers said this could also cause widespread business failures in the informal sector. “A sudden transition would mean that many of the micro-entrepreneurs, workshops and mechanics won’t be able to transition in terms of tools, knowhow and infrastructure. Besides, business failures, this will also lead to poor consumer experience,” they said in the letter.
They have also raised concerns that for high-demand users such as delivery workers or long-distance commuters, current EV technology “cannot yet match the price”, range and load bearing of ICE engines.
“These specific-use cases account for approximately 55% of all two-wheeler sales in both Delhi and India… and banning BS6 compliant ICE two-wheelers would cause customer distress ,” they said.
Technology lagging, export constraints
The industry bodies, in the communication, also pointed out that “despite 75,000+ crore investments… by domestic battery giants, their current technology is still lagging in terms of performance and safety standards with respect to Chinese cell manufacturers”.
A two-wheeler representative from SIAM explained that China controls 90% of anode and 85% of cathode production. “So, the cost of localised cells remain vulnerable to Chinese export controls and price shifts. Also, e-bikes rely heavily on HRE (Heavy Rare Earth) magnets required for motors. This is significantly more than the requirement for ICE vehicles as HRE and LRE (Light Rare Earth) magnets are primarily imported from China, which controls 95% of the production and sintering capacities globally,” the representative said.
Industry representatives, in their submissions, said sufficient time should be given to build a local supply ecosystem for EVs, and any forced shift will reduce ‘Atmanirbharta’.
Industry representatives also questioned the net environmental benefit of EV adoption at current energy mix levels. They pointed out that around 71% of India’s electricity comes from coal-based power generation (fossil fuels).
“… The national budget allocation for grants points out that coal-based power plants account for 71% of electricity generation… and solar and wind account for a mere 13%… Which means that whenever we are using EVs today, for over 70% of the consumption, we are creating carbon emissions somewhere else in the country,” they said.
Former Deputy Commissioner, Transport, Anil Chikkara, said, “A blanket restriction risks becoming an overcorrection. Electric vehicle adoption in Delhi is already growing, supported by incentives… instead of imposing strict timelines, the government should focus on promoting EV adoption by strengthening the charging ecosystem, ensuring continuity of incentives and improving access to financing to reduce upfront costs.”
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