Delhi is pushing the boundaries of electric vehicle adoption with a bold new initiative: retrofitting older petrol and diesel cars with electric powertrains. The move, designed to combat the city’s notorious air pollution, is already sparking intense debate within India’s automotive industry, pitting major car manufacturers against smaller, more agile retrofitters.
Delhi’s EV Retrofitting Policy: Incentives and Objectives
The Delhi government’s EV Policy 2.0 proposes a ₹50,000 incentive for the first 1,000 internal combustion engine (ICE) vehicles converted to electric. This incentive is specifically targeted at owners looking to breathe new, cleaner life into their existing petrol or diesel vehicles, especially as Delhi’s regulations prohibit petrol vehicles older than 15 years and diesel vehicles older than 10 years from operating within the city. Retrofitting presents a unique solution, extending the lifespan of these vehicles while drastically reducing tailpipe emissions. This initiative is part of the draft Delhi EV Policy 2.0, expected in Q1 2026, and aims to offset the high costs associated with retrofitting, which can reach around ₹6 lakh, without forcing owners to scrap their vehicles. The current EV policy is set to continue until March 2026.
Automakers Voice Safety and Technical Concerns
While the initiative holds promise, it faces considerable opposition from India’s leading automakers. These manufacturers argue that EV retrofitting is far more complex than previous conversions, such as those for CNG or LPG. Key concerns revolve around alterations to battery placement, weight distribution, software integration, and overall drivability. According to industry executives, speaking anonymously, these modifications can compromise the structural integrity and safety of the vehicle. They argue that unlike “born-electric” platforms designed specifically for EVs, retrofitting lacks scalability and alignment with established safety standards. Auto industry veteran Rajeev Chaba emphasized that critical aspects like battery integration, range, performance, and safety cannot be fully optimized in a retrofitted vehicle. Major players like Tata Motors, Mahindra & Mahindra, and JSW MG Motor have so far declined to comment officially, but have expressed reservations privately.
Startups and Retrofitters See Opportunity Amidst Challenges
Despite the skepticism from major manufacturers, a contingent of independent retrofitters is embracing the opportunity. These companies view retrofitting as a viable solution for Delhi’s pollution crisis, providing a means to convert even relatively newer vehicles (4-5 years old) to electric power. Delhi NCR-based Folks Motor, for example, is advocating for formal recognition of EV retrofitting as a distinct product category within India’s automotive policy framework. Managing Director Nikhil Khurana highlights the need for clear GST and regulatory frameworks to enable scaling. Pune-based Suma Japanese Technologies, a company with 24 ARAI certifications for different car models, laments the lack of FAME incentives for retrofitting and the unfavorable GST rates (18% for retrofitted EVs versus 5% for new EVs), which make conversions less commercially viable. These retrofitters are calling for GST reductions, scrappage subsidies, simplified registration processes, longer type approvals, and 10-year registration extensions to support the growth of the industry.
Delhi’s experiment with EV retrofitting is a bold step towards a cleaner future, but it faces significant hurdles. Whether the enthusiasm of retrofitters can overcome the concerns of major automakers remains to be seen, but the debate is undoubtedly shaping the future of electric mobility in India.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are requested to consult a certified financial advisor before making any investment decisions.
Last Updated: 18 January 2026
