More restrictions on ICE vehicles likely as India pushes EV transition: PM Adviser Tarun Kapoor

More restrictions on ICE vehicles likely as India pushes EV transition: PM Adviser Tarun Kapoor

Tarun Kapoor said restrictions on internal combustion engine (ICE) vehicles have already started in Delhi-NCR and could be introduced in other areas as well.

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66th SIAM Annual Convention: Govt wants to see a very major transition in India’s automotive landscape 66th SIAM Annual Convention: Govt wants to see a very major transition in India’s automotive landscape
Chetan Bhutani
  • Sep 3, 2026,
  • Updated Sep 3, 2026 3:16 PM IST

The government is preparing a major policy push to accelerate the transition to electric mobility, with tighter restrictions on conventional vehicles and new measures to support electric vehicle adoption expected in the coming years, Tarun Kapoor, Adviser to Prime Minister Narendra Modi, said on Thursday.

Speaking at the 66th SIAM Annual Convention in New Delhi, Kapoor said the government wants to see a “very major transition” in India’s automotive landscape over the next five years, rather than incremental changes.

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“Please expect some major things to come from our side, and the industry has to be prepared for that,” Kapoor said, while urging automakers to come forward with ideas to accelerate the transition.

Kapoor said restrictions on internal combustion engine (ICE) vehicles have already started in Delhi-NCR and could be introduced in other areas as well.

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“In Delhi and this region, already restrictions have started coming in. Other areas also they may start kicking in,” he said.

He later added that what is happening in the National Capital Region could happen elsewhere too, potentially creating a much larger market for electric vehicles.

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The comments come as Delhi’s 2026 EV policy has introduced phased electrification mandates, including restrictions on new registration of certain non-electric vehicles in specific segments. The policy mandates only electric N1 goods carriers for new registration from January 2027 and only electric two-wheelers from April 2028. 

Trucks biggest concern

Kapoor identified heavy vehicles, particularly trucks, as the biggest challenge in India’s transition away from fossil fuels.

He said reducing diesel consumption was critical for India’s energy security because the country cannot allow diesel demand to remain high even as petrol consumption changes.

“Diesel will then continue to be a very, very major bottleneck for us,” Kapoor said, stressing the need to move from CNG towards electric trucks.

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The government wants the electric truck market to scale rapidly rather than remain limited to small pilot projects. Kapoor said industry proposals of 200 or 500 electric trucks were insufficient and that volumes need to rise 10 times and then another 10 times.

He also highlighted the potential role of large fleet users such as the mining and coal sectors in driving faster electrification.

Battery manufacturing, charging infrastructure

Kapoor said the government is also examining taxation and other measures relating to imported batteries as domestic battery manufacturing capacity increases.

He said the objective is to ensure that greater manufacturing and value addition take place in India.

Charging infrastructure remains another major bottleneck. Kapoor said oil marketing companies had installed charging points across the country, but many were not functioning because low utilisation had resulted in inadequate maintenance.

He said more professional operators would need to emerge to ensure charging infrastructure remains operational.

Kapoor said the government is simultaneously looking at different ways to bring down electric vehicle costs, including financing models, battery swapping and greater charging availability along highways.

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Five-year transition

Kapoor linked the push for electric mobility to India’s energy-security concerns, saying the country remains heavily dependent on imported crude and LNG.

He also stressed that India should use the transition to build a globally competitive automotive manufacturing ecosystem, with greater domestic R&D, design, component manufacturing and innovation.

“We want that the whole landscape should change,” Kapoor said, adding that incremental changes would not be enough.

He said the government’s objective was to work with industry to achieve a major transition over the next five years while simultaneously positioning India as a larger global manufacturing and innovation hub.

The government is preparing a major policy push to accelerate the transition to electric mobility, with tighter restrictions on conventional vehicles and new measures to support electric vehicle adoption expected in the coming years, Tarun Kapoor, Adviser to Prime Minister Narendra Modi, said on Thursday.

Speaking at the 66th SIAM Annual Convention in New Delhi, Kapoor said the government wants to see a “very major transition” in India’s automotive landscape over the next five years, rather than incremental changes.

Advertisement

“Please expect some major things to come from our side, and the industry has to be prepared for that,” Kapoor said, while urging automakers to come forward with ideas to accelerate the transition.

Kapoor said restrictions on internal combustion engine (ICE) vehicles have already started in Delhi-NCR and could be introduced in other areas as well.

MUST READ | BT Explainer: What are EREVs? Why JSW MG Motor may bring this tech to India next

“In Delhi and this region, already restrictions have started coming in. Other areas also they may start kicking in,” he said.

He later added that what is happening in the National Capital Region could happen elsewhere too, potentially creating a much larger market for electric vehicles.

Advertisement

The comments come as Delhi’s 2026 EV policy has introduced phased electrification mandates, including restrictions on new registration of certain non-electric vehicles in specific segments. The policy mandates only electric N1 goods carriers for new registration from January 2027 and only electric two-wheelers from April 2028. 

Trucks biggest concern

Kapoor identified heavy vehicles, particularly trucks, as the biggest challenge in India’s transition away from fossil fuels.

He said reducing diesel consumption was critical for India’s energy security because the country cannot allow diesel demand to remain high even as petrol consumption changes.

“Diesel will then continue to be a very, very major bottleneck for us,” Kapoor said, stressing the need to move from CNG towards electric trucks.

Advertisement

DON'T MISS | 90% EVs exported out of India are from Maruti Suzuki: MD & CEO Hisashi Takeuchi

The government wants the electric truck market to scale rapidly rather than remain limited to small pilot projects. Kapoor said industry proposals of 200 or 500 electric trucks were insufficient and that volumes need to rise 10 times and then another 10 times.

He also highlighted the potential role of large fleet users such as the mining and coal sectors in driving faster electrification.

Battery manufacturing, charging infrastructure

Kapoor said the government is also examining taxation and other measures relating to imported batteries as domestic battery manufacturing capacity increases.

He said the objective is to ensure that greater manufacturing and value addition take place in India.

Charging infrastructure remains another major bottleneck. Kapoor said oil marketing companies had installed charging points across the country, but many were not functioning because low utilisation had resulted in inadequate maintenance.

He said more professional operators would need to emerge to ensure charging infrastructure remains operational.

Kapoor said the government is simultaneously looking at different ways to bring down electric vehicle costs, including financing models, battery swapping and greater charging availability along highways.

Advertisement

MUST READ | Amit Gupta on Yulu’s next ride: $93 million, 200,000 EVs and an IPO

Five-year transition

Kapoor linked the push for electric mobility to India’s energy-security concerns, saying the country remains heavily dependent on imported crude and LNG.

He also stressed that India should use the transition to build a globally competitive automotive manufacturing ecosystem, with greater domestic R&D, design, component manufacturing and innovation.

“We want that the whole landscape should change,” Kapoor said, adding that incremental changes would not be enough.

He said the government’s objective was to work with industry to achieve a major transition over the next five years while simultaneously positioning India as a larger global manufacturing and innovation hub.

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