Delhi's Push for EV Retrofits: A Costly Solution to Clean Air?
The Delhi government recently announced plans to incentivize the conversion of old petrol and diesel cars into electric vehicles. This move aims to combat the city's severe air pollution crisis. Under the proposed scheme, the government will provide a Rs 50,000 incentive for the first 1,000 vehicles retrofitted. However, officials note that the plan still requires Cabinet approval before implementation.
What Does EV Retrofitting Involve?
EV retrofitting refers to the process of transforming existing internal combustion engine vehicles into electric ones. Technicians replace the fuel tank, engine, exhaust system, and related components with a battery, controller, and motor. This conversion allows old cars to run on electricity instead of fossil fuels.
High Costs and Financial Challenges
Despite the incentive, retrofitting remains an expensive option for many vehicle owners. Research from JMK Research and Analytics indicates that converting an ICE vehicle to electric can cost 60-70% of the price of a new EV. For example, Tadpole Projects, a startup incubated at IIT Delhi, charges around Rs 6.5 lakh to retrofit a Gypsy. A Maruti Suzuki Swift Dzire conversion may cost between Rs 6 and 7 lakh.
Another company, Folks Motor, plans to offer conversions at lower prices, such as Rs 2.5 lakh for a Dzire. They claim this can increase mileage by 40-60% and reduce running costs by 30-50%. However, the market for retrofitting is still nascent, with few companies engaging in commercial sales.
Benefits and Drawbacks of Conversion
Proponents argue that retrofitting offers lower maintenance costs and helps owners avoid regulatory issues like GRAP and ELV rules. Jawaad Khan of Tadpole Projects highlights these advantages. Yet, critics point to significant financial burdens. Moushumi Mohanty from the Centre for Science and Environment states that retrofitting only extends a vehicle's lifespan by 4-6 years. Battery performance may degrade during this period due to vehicle weight and aging.
A total cost of ownership analysis over ten years shows minimal savings. Retrofitted four-wheelers have a TCO of Rs 6.32 per km, compared to Rs 7.07 for new EVs and Rs 7.197 for new ICE vehicles. For two-wheelers, retrofitted EVs cost Rs 1.6 per km versus Rs 2.36 for new EVs.
Why Retrofitting Hasn't Gained Momentum
Several factors hinder the widespread adoption of EV retrofitting. High GST rates pose a major barrier; retrofit kits face an 18% tax, while new EVs enjoy a 5% rate. Each vehicle model requires a unique conversion kit, which must be certified by authorities like ARAI or ICAT. This homologation process is time-consuming and expensive, costing between Rs 50 lakh and over Rs 1 crore per model.
Low demand for retrofit kits prevents large-scale manufacturing, keeping prices elevated. The CSE report emphasizes that retrofitting lacks warranties and often shows wear, making it less appealing to individual buyers. Commercial and institutional buyers may find it more viable due to economies of scale.
Is Retrofitting Worth It for You?
While the Rs 50,000 incentive reduces upfront costs, the overall expense remains high. Retrofitting makes sense for those seeking to extend their vehicle's life and comply with environmental regulations. However, for most individual owners, the financial benefits are slight. Experts recommend considering total ownership costs and battery durability before deciding. As Delhi battles pollution, this policy represents a step toward greener transport, but its success depends on making retrofitting more affordable and accessible.
