MoRTH Proposes Registration Exemption for More Powerful Low-Speed EVs, Sparking Industry Controversy

The Ministry of Road Transport and Highways (MoRTH) has proposed significant amendments to the Central Motor Vehicles Rules, particularly affecting the low-speed electric scooter segment. Key changes include raising the permissible motor power from 250 watts to 600 watts and eliminating the previous weight limitation of 60 kg. These vehicles will continue to be classified as “not treated as a motor vehicle,” exempting them from conventional registration processes and the Vahan system. The proposal aims to stimulate growth in the segment, which is expected to increase sales substantially over the next few fiscal years.

For the common citizen, this regulatory shift indicates a broader range of low-speed electric vehicles available in the market. It presents an opportunity for enhanced personal mobility and potential last-mile delivery solutions. While the removal of the weight ceiling opens up product development possibilities for manufacturers like BGauss, it also raises concerns about safety and regulatory compliance, particularly from competitors like Yulu. They argue that these changes may lead to heavier and potentially unsafe vehicles entering the market without proper oversight, thereby complicating regulatory dynamics for consumers.

Looking ahead, the government’s initiative represents a double-edged sword that necessitates careful monitoring. The draft amendments introduce tighter certification requirements to ensure safety standards, but the debate surrounding the weight allowance does highlight significant regulatory risks. As manufacturers begin to navigate this newfound flexibility, stakeholders will watch closely how the government addresses concerns raised by existing players in the market. Successful implementation of these regulations, balanced with necessary safety measures, will be crucial for sustaining growth in the electric vehicle landscape.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)