EV Retrofits Emerge as Fast-Track Solution for India's Commercial Vehicle Transition

India's push toward electric mobility may find an unexpected accelerator in retrofitting existing internal combustion engine vehicles, according to Exponent Energy executives who argue the approach could dramatically speed up the country's transition to zero-emission transport.

With approximately 5-6 million three-wheelers currently operating across India, replacing the entire fleet through new vehicle sales alone would take at least a decade, even if all new sales were electric from tomorrow. Industry observers suggest the actual timeline could stretch to 20 years.

Arun Vinayak, Co-founder of Exponent Energy, and Ayush Bhargava, Head of New Business Initiatives at the company, highlight that commercial vehicles—comprising only 10% of India's vehicle population—account for roughly 70% of road transport energy consumption. This concentration makes commercial fleet electrification particularly impactful for emissions reduction and energy security goals.

The economics present a compelling case for vehicle owners. An autorickshaw driver operating a 5-6 year old CNG or LPG three-wheeler could save approximately Rs 3,000 monthly immediately after retrofitting, compared to the Rs 3.5-4 lakh investment required for a new electric vehicle. Once the typical 3-year loan for retrofit equipment is repaid, monthly savings could reach Rs 10,000—representing nearly 70% savings compared to CNG operation.

The retrofit model requires loans of only Rs 1.5-2 lakh, making financing more accessible while preserving the residual value of existing vehicles. Drivers maintain access to established service networks for non-battery maintenance while benefiting from improved ride quality and reduced noise.

India has precedent for such transitions. The country's shift to CNG vehicles in the early 2000s, particularly in pollution-affected cities like Delhi, initially relied heavily on hybrid petrol-CNG vehicles and aftermarket conversions before pure CNG vehicles became dominant.

Safety and quality standards are already established through the AIS 123 guidelines published in 2015, which mandate certification for retrofit kits, testing of brakes and range, weight restrictions, and proper documentation. The framework requires authorized retrofit centers with trained technicians.

However, policy gaps remain. Current government incentive programs focus predominantly on new EV purchases and charging infrastructure. Retrofit batteries and kits face 18% GST compared to 5% for new electric vehicles. The PM e-DRIVE flagship program does not currently include subsidies for commercial vehicle retrofits.

International markets are moving in this direction. France has subsidized electric retrofits, Stellantis has partnered with conversion specialists for light commercial vehicles, and Volvo initiated a program two years ago to convert construction equipment to electric power.

Each retrofitted three-wheeler eliminates approximately 4-5 tonnes of CO2 emissions annually. With millions of eligible vehicles potentially available for conversion, the cumulative impact on India's carbon footprint could be substantial while the EV manufacturing sector scales to meet long-term demand.