FADA Urges Dealer Participation in Delhi EV Policy Framework Amid Mobility Shift

As Delhi accelerates its transition toward electric mobility, the Federation of Automobile Dealers Associations has called for greater involvement of automobile dealers in shaping the city’s upcoming EV policy. The industry body stresses that while sustainability goals are essential, the transition must also safeguard livelihoods and ensure inclusive growth.

Delhi at the Centre of India’s EV Transformation

Delhi has emerged as a key hub for India’s electric vehicle (EV) transition, acting both as a policy leader and a testing ground for innovative mobility solutions. Speaking at a recent industry event, FADA President C S Vigneshwar highlighted the capital’s critical role in driving the country’s shift toward cleaner transportation.

Referring to the draft EV policy, he reiterated that the automobile industry fully supports the move toward sustainable mobility. However, he emphasized that policy implementation must focus on enabling stakeholders rather than imposing rigid regulations.

“Enablement always progresses faster than enforcement,” he noted, underlining the importance of balancing environmental objectives with economic realities.

Dealers Seek Inclusion in Policy Planning

FADA leaders have urged the Delhi government to actively include dealers in the policymaking process. According to Shailendra Gupta, the dealer community plays a vital role in the automotive ecosystem and must not be overlooked.

Gupta appealed to policymakers to ensure that future EV policies:

• Incorporate dealer feedback
• Protect employment across the sector
• Support long-term business sustainability

He emphasized that thousands of families depend on the automobile retail ecosystem, making it essential to consider their interests during the transition.

Strong Growth in Delhi’s Automobile Retail Sector

Despite the ongoing transition toward EVs, Delhi’s automobile market has demonstrated robust growth. In March 2026 alone, the city recorded a 17% increase in vehicle retail sales.

Segment-wise growth highlights include:

• Two-wheelers: 30% growth
• Passenger vehicles: 25% growth
• Commercial vehicles: 22% growth

Over the past year, nearly 800,000 new vehicles have been registered in Delhi, reflecting strong consumer demand.

The dealer network in the city is extensive, comprising around 550 outlets and employing approximately 55,000 individuals. Beyond direct employment, the sector supports thousands of additional jobs linked to logistics, servicing, and allied industries.

Significant Contribution to Government Revenue

The automobile retail sector is also a major contributor to government finances. According to FADA, dealers in Delhi generate around ₹7,150 crore annually in revenue for the government.

This includes:

• ₹2,650 crore from motor vehicle taxes
• ₹4,500 crore through GST collections

These figures highlight the economic importance of the dealer ecosystem and reinforce the need to protect it during the EV transition.

Rapid Growth in Electric Vehicle Adoption

Delhi is witnessing a sharp rise in EV adoption across segments, indicating growing consumer acceptance and policy effectiveness.

Key trends include:

• Electric two-wheelers: 62% growth
• Passenger EVs: 41% growth
• Commercial EVs: Nearly 700% surge

This rapid growth is particularly evident in the commercial segment, where businesses are increasingly adopting EVs for cost efficiency and sustainability.

Gupta noted that India has moved beyond debating EV adoption and is now firmly in the implementation phase. However, he cautioned that growth will vary across segments and must be supported by realistic policies.

Dealers as Key Drivers of the Transition

FADA has emphasized that automobile dealers are at the forefront of the EV transition, serving as the primary interface between manufacturers and consumers.

According to Vigneshwar, much of the operational responsibility for this transition falls on dealers, who must:

• Educate customers about EVs
• Manage inventory shifts from ICE vehicles to EVs
• Train staff to handle new technologies
• Support after-sales service and maintenance

Gupta reinforced this point, stating that dealers are already managing multiple responsibilities and will play a crucial role in ensuring a smooth transition.

FADA’s Key Recommendations for Delhi EV Policy

To support a balanced and sustainable transition, FADA has outlined three primary focus areas:

1. Policy Stability

A consistent and predictable policy environment is essential for long-term planning and investment.

2. Infrastructure Development

FADA has proposed the installation of 150 public EV charging stations across Delhi. The association has even offered to partner with the government to fund and develop this infrastructure.

3. Employment and Skill Development

Recognizing the need for an EV-ready workforce, FADA has suggested:

• Setting up training centres
• Establishing centres of excellence in ITIs
• Creating employment linkages with dealerships and manufacturers

These initiatives aim to ensure that workers are equipped with the skills needed for the evolving automotive landscape.

Scrappage Policy and Auto Zones Proposal

FADA has also expressed support for the vehicle scrappage policy but pointed out the lack of adequate infrastructure in Delhi.

To address this, the association has proposed:

• Setting up scrappage centres in collaboration with the government
• Developing dedicated auto zones with integrated facilities such as internal roads, solar power, and water treatment systems

These measures could streamline operations and improve efficiency across the sector.

Balancing Sustainability with Livelihoods

A central theme of FADA’s recommendations is the need to balance environmental goals with economic realities. While the shift to EVs is necessary, it must not come at the cost of livelihoods.

Vigneshwar emphasized that the transition should be inclusive, ensuring that those who form the backbone of the industry are not left behind.

Gupta echoed this sentiment, describing the EV transition as both a challenge and an opportunity. He highlighted the importance of adaptability, noting that businesses must evolve to remain relevant in a changing landscape.

Conclusion

Delhi’s EV policy represents a significant step toward sustainable mobility, but its success will depend on how well it integrates all stakeholders. By advocating for dealer inclusion, FADA has brought attention to the practical challenges of implementing large-scale change.

A collaborative approach—combining policy support, infrastructure development, and workforce training—will be key to ensuring a smooth and equitable transition.

As Delhi continues to lead India’s EV journey, aligning policy vision with ground realities will determine the long-term success of this transformation.