As the Delhi government moves forward with its electric vehicle policy framework, the Federation of Automobile Dealers Associations (FADA) has called for greater inclusion of automobile dealers in the policy roadmap. The association emphasized the need to balance environmental goals with employment and business sustainability across the dealer ecosystem.
Dealers urge Inclusive EV Policy
Speaking at an industry event in the capital, C S Vigneshwar highlighted Delhi’s role as a key driver of India’s mobility transition. He described the city as both a policy hub and a testing ground for new mobility initiatives.
Referring to the recently released EV policy draft, Vigneshwar said the industry supports the shift toward cleaner mobility, but stressed that the transition must be enabling and inclusive. He noted that policies should consider the livelihoods of those working within the automotive retail ecosystem.
“Enablement always goes faster than enforcement,” Vigneshwar said, adding that the policy framework should support businesses and employment during the transition.
Dealer Community Seeks Government Support
Building on this, Shailendra Gupta urged the Delhi government to consider dealer perspectives as policies evolve.
Gupta requested continued support from policymakers, highlighting the importance of sustained employment and growth for families dependent on the automobile retail sector. He emphasized that dealer inclusion is essential for a smooth transition to electric mobility.
Delhi Auto Retail Market Shows Strong Growth
Delhi’s automobile retail market recorded strong growth in March 2026, reflecting robust demand across segments:
- Two-wheelers grew by 30%
- Passenger vehicles increased by 25%
- Commercial vehicles rose by 22%
Over the past year, nearly 800,000 new vehicles were registered in Delhi. The dealer network, comprising around 550 outlets, currently employs approximately 55,000 people and supports thousands of families linked to the automotive retail sector.
Significant Economic Contribution
According to Gupta, Delhi’s automobile dealers contribute approximately ₹7,150 crore annually to government revenues. This includes:
- ₹2,650 crore through motor vehicle tax
- ₹4,500 crore through GST
The figures highlight the sector’s substantial role in the capital’s economy.
EV Adoption Accelerates Across Segments
Delhi is also witnessing rapid adoption of electric vehicles, particularly in commercial segments:
- Electric two-wheelers grew by 62%
- Passenger EVs increased by 41%
- Commercial EVs surged nearly 700%
Gupta noted that while EV adoption is gaining momentum, the transition pace will vary across segments, requiring policies that align with market realities.
“India is no longer debating EVs. India is adopting EVs,” Gupta said, while emphasizing that growth in electric mobility may not always be linear.
Dealers Positioned as Transition Partners
Vigneshwar highlighted that dealers serve as the last-mile interface with customers, making them central to EV adoption. He noted that much of the operational burden of the transition will fall on dealers, including customer education, inventory management, and workforce training.
Gupta added that dealers are already managing multiple responsibilities as the industry transitions toward electric mobility.
“The biggest burden of this transformation does not fall on OEMs alone; it falls on dealers,” he said.
FADA Proposes Key Initiatives
To support the EV transition in Delhi, FADA outlined three priorities:
- Policy stability
- Infrastructure development
- Employment generation
The association proposed setting up 150 public EV charging stations across the city and offered to partner with the government to fund the initiative.
Additionally, FADA recommended establishing training centres and centres of excellence at ITIs to develop an EV-ready workforce, with employment linkages to dealerships and OEMs.
Scrappage Policy and Auto Zones Proposed
FADA also supported the vehicle scrappage policy while highlighting the need for adequate infrastructure. The association proposed setting up scrappage centres in partnership with the government.
Furthermore, FADA expressed willingness to lead the development of dedicated auto zones featuring integrated infrastructure, including internal roads, solar power systems, and water treatment facilities.
Balancing Transition with Livelihoods
Vigneshwar stressed that the shift to electric mobility must not leave behind those who form the backbone of the automotive retail industry. Gupta echoed the sentiment, describing the transition as both a challenge and an opportunity.
“Delhi is changing, business is changing, and if we do not change, we risk being left behind,” Gupta said, adding that dealers are ready to play a leading role in the transition, provided policy frameworks remain supportive and aligned with ground realities.
As Delhi accelerates its transition toward electric mobility, FADA’s call for dealer inclusion highlights the importance of balancing sustainability goals with employment, infrastructure development, and industry growth.
