The Federation of Automobile Dealers Associations (FADA) has urged authorities to reconsider the proposed restriction on new registrations of CNG-powered three-wheelers in Delhi-NCR, arguing that the move could have unintended consequences for both emissions reduction efforts and livelihoods dependent on the sector.
In a letter addressed to the Chairman of the Commission for Air Quality Management (CAQM), FADA’s Delhi chapter expressed concerns over the planned transition to an all-electric three-wheeler market in the region. The industry body has also recommended introducing a scrappage-linked replacement programme to encourage the retirement of older, higher-emission vehicles.
The CAQM recently directed that only electric L5-category three-wheelers be registered in Delhi from January 1, 2027. The mandate will be extended to high vehicle density districts such as Gurugram, Faridabad, Sonipat, Ghaziabad and Gautam Buddha Nagar from January 2028, followed by the remaining NCR districts from January 2029.
The commission stated that the decision is part of broader efforts to improve air quality in the region, with studies identifying road transport as a significant contributor to particulate emissions. An expert committee constituted by the CAQM had also recommended accelerating the adoption of electric three-wheelers.
However, FADA argues that restricting registrations of new CNG-powered autos may not immediately reduce emissions, as existing older vehicles will continue operating as long as their permits remain valid. According to the association, replacing ageing BS-IV and older three-wheelers with newer BS-VI-compliant CNG models or electric vehicles could deliver more immediate environmental benefits.
The dealers’ body has also highlighted the economic implications of the proposed shift. It noted that CNG auto-rickshaws continue to play a key role in last-mile transportation across Delhi-NCR while supporting the livelihoods of permit holders, dealerships, financiers and related businesses.
As an alternative, FADA has proposed a structured vehicle replacement programme that incentivises owners of older three-wheelers to transition to cleaner BS-VI CNG or electric alternatives. The association believes such an approach could help lower emissions while minimising disruption to affordable public transport services.
The discussion comes as policymakers continue to finalise the next phase of Delhi’s electric vehicle strategy. The draft Delhi EV Policy also includes proposals aimed at accelerating EV adoption across multiple vehicle segments, including three-wheelers and two-wheelers.
Whether regulators retain the proposed restrictions or incorporate industry feedback remains to be seen as consultations on the policy continue.
