Siam divided over Delhi's proposed ban on CNG-powered three-wheelers

Deadline for responses to the draft EV policy ended on May 10 but siam may seek more time from the Delhi government to respond

The Society of Indian Automobile Manufacturers (Siam) may seek more time from the Delhi government to respond to its draft electric vehicle (EV) policy as member companies remain divided over the proposal to stop registrations of CNG-powered three-wheelers from January 1, 2027, allowing only electric three-wheelers thereafter. The deadline for responses to the draft policy ended on May 10.

 

Siam’s three-wheeler CEO Council had earlier drafted a letter proposing a “neutral stance” on the issue, sources aware of the development said. The position was eventually supported by Mahindra & Mahindra, after initial opposition. However, the company later sent another communication conveying its inability to accept the draft letter prepared by the CEO Council, the sources added.

 

Bajaj Auto, which dominates the CNG-powered three-wheeler market in India and Delhi, has taken the stand that the government should not adopt “double standards” and, in that case, should ban CNG across all segments, including passenger vehicles, trucks and commercial vehicles. M&M, meanwhile, is the largest player in the electric three-wheeler market.

 

A query sent to Siam Director General Rajesh Menon did not elicit a response until press time. However, sources said that during Siam deliberations in Chennai, President Shailesh Chandra urged Mahindra Electric Managing Director R Velusamy to support a neutral position. The request was made in the interest of maintaining a unified industry stance. Mahindra eventually agreed, only to later reverse its position, the sources added.

 

Responding to a query from Business Standard on whether the company had moved away from the proposed neutral stance, Suman Misra, managing director and chief executive officer of Mahindra Last Mile Mobility, said the Delhi EV policy recognises the role electric last-mile mobility can play in improving air quality and reducing noise and emissions in densely populated urban centres, where commercial passenger and cargo vehicles operate extensively every day.

 

Misra added that by supporting EV adoption, charging infrastructure and a stronger ecosystem, the policy could significantly accelerate the transition towards cleaner last-mile transportation in India. “As India’s largest electric three-wheeler manufacturer, we remain committed to working with the government and industry partners to ensure that the transition is smooth and well-supported on the ground,” she added.