Govt. allows sale of EVs without batteries

The Ministry of Road Transport and Highways has directed all state governments and Union Territories to allow the sale and registration electric vehicles without batteries.

The Central Motor Vehicles Rules, 1989, requires OEMs to get the prototype of the electric vehicle and the battery approved by the test agencies. The government has now clarified that EVs without batteries can be sold and registered based on their type approval certificate. Further, details of the make or type of battery will not be required at the time of registration.

The cost of the battery accounts for 30-40% of the total cost of the electric vehicle. De-linking the cost of the battery will bring down the upfront cost of the electric 2-wheelers and 3-wheelers.

Subsidies on EVs under the government’s FAME policy are linked to the battery capacity. Therefore, how subsidies will be calculated in the future needs to be seen.

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