SIAM Urges Delhi Govt to Reconsider Proposed Ban on New ICE 2W From 2028

The Society of Indian Automobile Manufacturers (SIAM) has urged the Delhi government to reconsider a proposal to stop registrations of new petrol-powered two-wheelers from April 2028, saying that the move would do little to improve air quality and instead hurt consumers who depend on such vehicles for daily mobility.

In a letter to Delhi Transport Minister Pankaj Kumar Singh, seen by Autocar Professional, the industry body sought reconsideration of Clause 8.2.1 of the draft Delhi Electric Vehicle Policy, which proposes that only electric two-wheelers be allowed for new registrations in the national capital territory from April 1, 2028.

SIAM said modern Bharat Stage VI-compliant two-wheelers sold after April 2020 already emit very low particulate matter emissions due to the use of electronic port fuel injection systems and three-way catalytic converters.

“Banning their registration will not improve AQI in Delhi,” the association said in the letter. The industry body said particulate matter emissions, which are a key contributor to Delhi’s poor Air Quality Index (AQI), largely come from much older vehicles.

According to SIAM, pre-BS IV two-wheelers that are more than 10 to 15 years old contribute close to 99.5% of particulate matter emissions from the segment in Delhi.

“Removing them from the streets, will help improve the AQI,” SIAM said, adding that the draft policy should focus on phasing out older polluting vehicles instead of restricting registrations of modern BS VI models.

The observations and recommendations come as the Delhi government prepares a revised EV policy aimed at accelerating electric vehicle adoption in the capital through demand incentives, charging infrastructure expansion and stricter electrification targets across vehicle segments.

The proposed ban on new ICE two-wheelers is among the most significant measures included in the draft policy.

SIAM, however, said the proposed restriction “will neither help improve AQI, nor is it practically feasible”. The association also raised concerns over the readiness of electric two-wheelers for certain categories of users, particularly commercial and high-usage customers. “For high-demand users such as delivery workers or long-distance commuters current EV technology cannot yet match the price, range and load bearing of ICE engines,” SIAM said.

It added that these use cases account for around 65% of all two-wheeler sales in both Delhi and the broader Indian market. The association warned that restricting sales of BS VI-compliant two-wheelers could therefore result in “customer distress”.

India is the world’s largest market for motorcycles and scooters, and petrol-powered models continue to dominate overall sales despite rising adoption of electric vehicles in recent years.

Delhi has emerged as one of India’s leading electric vehicle markets due to state incentives and policy support. The city government has been pushing for faster electrification as part of broader efforts to reduce vehicular pollution and lower dependence on fossil fuels.

SIAM said it supports the Delhi government’s efforts to encourage electric mobility and backed the incentives proposed under the draft policy.

“Delhi govt has been actively encouraging electric vehicles through additional demand incentives. We support the incentives provided under section 4.2.2 of the Draft Policy,” the association said.

At the same time, it urged the government to provide long-term certainty on the continuation of EV incentives “without interruption” to help sustain consumer demand.

The industry body also recommended what it described as a “customer-centric policy” that supports multiple low-emission technologies instead of focusing only on battery electric vehicles.

SIAM said cleaner fuel alternatives such as flex-fuel vehicles, compressed biogas and compressed natural gas should also be promoted as part of a broader green mobility strategy.

“Policy should enable all green technologies, avoiding unsustainable burden on the government exchequer,” the association said.

The letter reflects growing concerns within the automobile industry over the pace of transition towards electric mobility, particularly in mass-market segments where affordability, vehicle range and carrying capacity remain important factors for buyers.

Automakers have been increasing investments in electric scooters and motorcycles, but the industry continues to rely heavily on conventional ICE models for volumes and profitability.

The Delhi government is yet to finalise the EV policy, and consultations with industry stakeholders are ongoing.