EV Retrofit Push in India

Context & Why in News ?

• Delhi government announced incentives under its upcoming EV Policy to promote retrofitting of old ICE vehicles into EVs.
• Incentives include:
  • ₹50,000 for first 1,000 retrofitted vehicles.
  • Focus on 2-wheelers & 3-wheelers initially.
• Policy aims to address urban air pollution, vehicle scrappage gaps, and affordability barriers to EV adoption.

Relevance

GS III – Environment & Economy

• Electric mobility
• Urban air pollution
• Circular economy

GS II – Governance

• Urban transport policy
• Centre–State regulation (CMVR)

What is EV Retrofitting? 

• Retrofitting = converting an Internal Combustion Engine (ICE) vehicle into an Electric Vehicle (EV).
• Key components replaced:
  • Engine → Electric motor
  • Fuel tank → Battery pack
  • Transmission simplified
• Requires approval under Central Motor Vehicles Rules (CMVR) and testing by agencies like ARAI / ICAT.

Economic Analysis: Why Retrofitting Is Expensive ?

• Retrofit cost:
  • 2-wheelers: ~₹60,000–₹1 lakh
  • 4-wheelers: ₹3.5–6 lakh
• High cost drivers:
  • Battery (~40–50% of cost)
  • Low economies of scale
  • Certification & compliance costs

Concerns

• Battery sourcing & disposal:
  • Environmental costs of lithium extraction.
• Limited lifecycle benefit:
  • If retrofit lifespan < new EV lifespan.

Technology & Industry Dimension

• Market maturity:
  • Retrofit industry still nascent.
• Supply chain gaps:
  • Limited certified vendors.
• Warranty issues:
  • Retrofit kits often offer:
    • ~3-year battery warranty
    • ~1 lakh km motor warranty
• Safety & reliability:
  • Fire risk concerns if standards not enforced.

Key Challenges

Economic

• High cost vs declining cost of new EVs.
• Limited subsidy support compared to new EVs.

Institutional

• Complex approval & certification.
• Lack of uniform standards across states.

Environmental

• Battery recycling ecosystem still weak.

Market

• Low consumer confidence and limited scale.

Way Forward

• Targeted retrofitting strategy:
  • Focus on:
    • 2W, 3W, taxis, delivery fleets.
• Battery-as-a-Service (BaaS):
  • Reduce upfront retrofit cost.
• Stronger incentives:
  • Link with vehicle scrappage policy.
• Standardisation:
  • National retrofit standards & safety norms.
• Urban low-emission zones:
  • Mandate retrofitting or EV-only access.
• Parallel push:
  • Do not dilute incentives for new EVs.

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