Neutral impactSector
MoRTH plans more powerful low-speed EVs without registration; industry splits over exemption
BusinessLine 2 hrs ago·13 Sept 2026, 2:13 pm
The Ministry of Road Transport and Highways (MoRTH) has proposed a significant revision to the rules governing low-speed electric vehicles (LSUVs). The new draft regulations would increase the permitted motor power from 250W to 600W and remove the current 60-kilogram weight cap. Crucially, the government intends to retain the exemption that allows these vehicles to operate without registration, a move aimed at boosting the affordable electric two-wheeler market.
This policy shift has sparked a debate within the industry. Full-service Original Equipment Manufacturers (OEMs) view the higher power and weight limits as an opportunity to introduce more robust and capable vehicles, potentially expanding their market reach. Conversely, micro-mobility operators like Yulu have raised concerns, arguing that the updated rules could allow heavier, more powerful vehicles to exploit the registration exemption, thereby bypassing safety regulations and fair competition.
Investors should monitor the finalization of these rules and the subsequent response from key players. The outcome will determine the competitive landscape for low-speed EVs, influencing the market share of established manufacturers and the long-term viability of the exemption policy.
Excerpt from BusinessLine
India plans to raise the permissible motor power of low-speed electric scooters from 250 watts to 600 watts and scrap the existing 60 kg weight ceiling while keeping them exempt from registration, splitting the industry between leading low-speed mobility players such as Yulu, which oppose the relaxation, and…Read the original at BusinessLine
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