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Delhi Offers Subsidies to Convert Old Cars into EVs

  //automotive-transportation.news-articles.net/co .. fers-subsidies-to-convert-old-cars-into-evs.html
  Published in Automotive and Transportation on Monday, January 5th 2026 at 2:57 GMT by moneycontrol.com
      Locale: Delhi, INDIA

Delhi's Bold Move: Converting Old Cars into EVs with Subsidies – A Sustainable Alternative to Scrapping?

The government of Delhi is pioneering a novel approach to tackling vehicular pollution, moving away from the traditional "scrap and replace" model towards incentivizing the conversion of older petrol and diesel vehicles into electric vehicles (EVs). A recently announced plan proposes a subsidy of up to Rs. 50,000 for the first 1,000 cars that undergo this transformation, marking a significant shift in policy aimed at promoting sustainability and reducing environmental impact while also addressing concerns about vehicle ownership affordability.

For years, Delhi has grappled with severe air quality issues, largely attributed to vehicular emissions. The city previously implemented a scrappage policy – requiring older vehicles (typically those over 15 years for petrol cars and 10 years for diesel) to be decommissioned – but this initiative faced considerable resistance from vehicle owners who often couldn't afford replacement vehicles. The new conversion scheme is designed as a direct response to these concerns, offering a more accessible pathway towards cleaner transportation.

The Conversion Incentive: How it Works & Eligibility

Under the proposed scheme, individuals and registered garages can apply for subsidies when converting older cars into EVs. The subsidy amount will vary depending on the type of vehicle and the extent of conversion undertaken. While specific details are still being finalized, the initial announcement indicates a maximum subsidy of Rs. 50,000 per car. This is intended to offset a portion of the costs associated with retrofitting an internal combustion engine (ICE) vehicle with an electric powertrain – including batteries, motor, controller, and necessary modifications to the chassis and electrical system.

The scheme prioritizes the first 1,000 conversions to gauge its effectiveness and impact. Following this pilot phase, the government will evaluate the program's success before potentially expanding it further. The eligibility criteria are expected to include:

• Vehicle Age: The vehicle must be older than 15 years for petrol cars and 10 years for diesel cars, aligning with existing scrappage policy age limits.
• Registration: The vehicle must be registered in Delhi.
• Conversion Standards: Conversions must adhere to safety standards and guidelines established by the government. This is a crucial aspect, as ensuring the converted vehicles are roadworthy and safe is paramount. The Bureau of Energy Efficiency (BEE) has been involved in developing these standards for EV conversions, which will likely be adopted by Delhi.
• Registered Garages: Conversions must be carried out by registered garages that meet specific technical requirements and have undergone necessary training. This ensures quality control and accountability throughout the conversion process.

Why Conversion Over Scrapping? Addressing Affordability & Sustainability

The shift towards EV conversions represents a significant policy pivot for several reasons. Firstly, it directly addresses the affordability barrier associated with scrapping older vehicles. Replacing an old car with a new one, especially an electric vehicle, can be financially prohibitive for many Delhi residents. Conversion offers a more budget-friendly alternative, allowing owners to retain their existing vehicles while significantly reducing emissions.

Secondly, the conversion approach aligns with broader sustainability goals. Scrapping perfectly functional vehicles – even if they are older and less efficient – contributes to resource waste. The materials used in vehicle manufacturing require significant energy and resources to extract and process. Converting an existing vehicle minimizes this environmental footprint by reusing components and extending their lifespan.

Thirdly, the initiative acknowledges the emotional attachment many owners have to their cars. Forcing people to scrap vehicles they’ve owned for years can be met with resistance and resentment. Conversion provides a more palatable solution that respects individual preferences while still promoting cleaner transportation.

Challenges & Considerations Ahead

While the Delhi government's plan is commendable, several challenges need to be addressed for its successful implementation:

• Conversion Costs: The Rs. 50,000 subsidy might not fully cover the cost of conversion, which can range from Rs. 80,000 to over Rs. 150,000 depending on the vehicle model and complexity of the modifications. The government will need to continuously evaluate the subsidy amount to ensure it remains attractive enough to incentivize conversions.
• Safety & Performance: Ensuring that converted vehicles meet stringent safety standards is critical. Poorly executed conversions can compromise road safety and negate the environmental benefits. Rigorous testing and certification processes are essential.
• Standardization & Quality Control: Establishing clear conversion standards and ensuring consistent quality across registered garages will be vital to maintain public trust and prevent substandard work.
• Battery Disposal: The disposal of batteries from converted vehicles presents a new challenge. A robust battery recycling infrastructure is needed to prevent environmental contamination.
• Impact on New EV Sales: There's potential for the conversion scheme to impact sales of newly manufactured EVs, which could be a concern for manufacturers who are investing heavily in electric vehicle production.

Looking Ahead: A Potential Model for Other Cities?

Delhi’s initiative is being closely watched by other Indian cities struggling with air pollution and facing similar challenges related to vehicular emissions. If successful, it could serve as a model for promoting sustainable transportation through EV conversions rather than relying solely on scrappage policies. The success of this program will depend heavily on effective implementation, ongoing monitoring, and adaptability based on real-world experience. The Delhi government's willingness to experiment with innovative solutions offers a glimmer of hope in the fight against air pollution and demonstrates a commitment to finding practical and affordable pathways towards a cleaner future for its citizens.

[ Link to original article: https://www.moneycontrol.com/city/convert-old-cars-into-evs-instead-of-scrapping-them-delhi-govt-plans-rs-50-000-subsidy-for-first-1-000-cars-article-13756679.html ]