FADA Seeks Dealer Inclusion In Delhi EV Policy

As the Delhi government moves to firm up its electric vehicle policy framework, the Federation of Automobile Dealers Associations (FADA) has called for greater inclusion of dealers in the policy roadmap, stressing the need to balance environmental goals with livelihoods on the ground.

Speaking at an industry event in the capital, FADA President C S Vigneshwar positioned Delhi as central to India’s mobility transition, both as a policy hub and a testbed for new ideas.

Referring to the recently released EV policy draft, he said the industry supports the shift to cleaner mobility, but emphasised that the transition must remain enabling and inclusive. “Enablement always goes faster than enforcement,” he said, adding that livelihoods across the dealer ecosystem must be factored into the policy framework.

Building on this, FADA Delhi Chairperson Shailendra Gupta urged the Delhi government to consider dealer perspectives as policies evolve. “I would like to request the Hon’ble Chief Minister to continue supporting our dealer community in upcoming policies, to consider our suggestions, and to ensure sustained employment and growth for every family dependent on this industry,” Gupta said.

Retail Growth And Economic Contribution
Delhi’s automobile retail market recorded a 17% growth in March 2026, reflecting strong demand across segments. Two-wheelers grew by 30%, passenger vehicles by 25% and commercial vehicles by 22%. Over the past year, nearly 800,000 new vehicles have been registered in the city. The dealer network, comprising around 550 outlets, employs close to 55,000 people and supports thousands of families linked to the trade.

Gupta also highlighted the sector’s fiscal contribution, noting that Delhi’s automobile dealers contribute about ₹7,150 crore annually to government revenues, which includes ₹2,650 crore through motor vehicle tax and ₹4,500 crore via GST.

EV Adoption Gathers Pace
Alongside conventional growth, Delhi is witnessing a rapid rise in EV adoption, particularly in commercial vehicles. Electric two-wheelers grew by 62%, passenger EVs by 41% and commercial EVs surged nearly 700%, signalling an accelerated transition in certain segments.

“India is no longer debating EVs. India is adopting EVs,” Gupta said, while cautioning that the pace of transition will vary across segments. “Growth is not always linear. Policy and ground realities must always remain aligned,” he added.

Dealers Seek Role As Transition Partners
Highlighting the role of dealers as the last-mile interface with customers, Vigneshwar noted that the operational burden of transition will largely fall on the retail network, reinforcing the need for alignment between policy intent and on-ground realities.

Gupta added that dealers are already handling multiple responsibilities, from customer education to EV adoption, inventory management and workforce training.
“The biggest burden of this transformation does not fall on OEMs alone; it falls on dealers,” he said.

To support the transition, FADA has outlined three key priorities for Delhi: policy stability, infrastructure development and employment generation.

On infrastructure, the association has proposed setting up 150 public EV charging stations in the city and has offered to fund them as a partner to the government. On skilling, it has proposed setting up training centres and centres of excellence at ITIs to build an EV-ready workforce, with employment linkages to dealerships and OEMs.

Scrappage, Auto Zones Proposed
FADA has also backed the vehicle scrappage policy, while highlighting the lack of adequate infrastructure in Delhi, and proposed setting up scrappage centres in partnership with the government.

In addition, the association has expressed willingness to lead the development of dedicated auto zones with integrated infrastructure such as internal roads, solar power and water treatment systems.

Balancing Transition With Livelihoods
Vigneshwar said the transition must not leave behind those who form the backbone of the industry. Gupta echoed the sentiment, framing the shift as both a challenge and an opportunity. “Delhi is changing, business is changing, and if we do not change, we risk being left behind,” he said. He added that dealers are ready to play a leading role in the transition, provided policy frameworks remain supportive and aligned with ground realities.