The government is expected to mandate the sale of only electric three-wheelers from April 2023, and all of the newly bought two-wheelers with engine capacity up to the 150cc need to be powered by electricity from April 2025, reports Times of India.
These are recommendations of a high-level government panel and is aimed at a faster transition towards electric vehicles and reduce vehicular pollution. These two segments see annual sales of over two crore units, accounting for more than three-quarters of traffic on Indian roads.
To ensure that move does not impact vehicles which are registered until the cut-off date, the government is giving a four to a six-year transition period to the auto industry, which it believes to be enough to recover the investment.
The industry is also pumping in large amounts of money to manufacture BS-6 compliant vehicles from April next year. The power ministry has been tasked to come up with a framework for carbon credit trading mechanism, to compel the auto industry to shift more towards manufacturing more electric vehicles.