Shot in the arm for EV transition as CAQM directs wiping out ICE vehicles in commercial fleets in Delhi-NCR

According to the orders issued, only CNG or electric three-wheeler autorickshaws shall be additionally inducted into the existing fleet of vehicles.

Jun 4, 2025 - 13:10

Shot in the arm for EV transition as CAQM directs wiping out ICE vehicles in commercial fleets in Delhi-NCR

The Commission for Air Quality Management (CAQM) in the National Capital Region and adjoining areas issued orders directing motor vehicle aggregators, delivery service providers, and ecommerce entities to stop inducting petrol and diesel-run vehicles into their existing fleet, with effect from January 1, 2026.

These guidelines, which were part of the statutory directions, aim to curb air pollution in these regions. The transport sector contributes significantly to the air pollution load in the NCR region, with commercial vehicles taking the lead often due to extensive plying, overflowing, and poor maintenance.

According to the orders issued, only CNG or electric three-wheeler autorickshaws shall be additionally inducted into the existing fleet of vehicles.

The move comes as a shot in the arm for the many electric fleet operators that operate extensive two-wheeler and three-wheeler fleets.

“We are super bullish about this move. It’s a strong validation of the work we’ve been doing to make clean mobility accessible and viable for gig workers and businesses. This directive not only sets the tone for Delhi-NCR but signals what’s coming for the rest of India. We believe other states will follow suit soon,” said Vivekananda Hallekere, Founder of Bounce.

Bounce currently operates across Delhi-NCR and Bengaluru and has scaled to over 20,000 EVs. It recently began Bounce Daily—a feature that allows delivery partners to lease its vehicles to conduct last-mile deliveries for ecommerce, quick commerce and food deliveries.

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India’s last-mile logistics have seen increasing adoption of EVs, with many startups providing flexible options for delivery partners and migrant gig workers not looking to buy an EV. These fleet operators lease out vehicles to individuals for their livelihood.

One of the players in this segment is Zypp Electric. “We applaud the Delhi-NCR Commission for Air Quality Management’s directive to allow only electric vehicles on fleet platforms. This move, along with plans for 5,000+ charging stations and battery swapping networks, will accelerate cleaner mobility and EV-led last-mile logistics,” said Rashi Agarwal, CBO and Co-founder of Zypp.

The company operates over 22,000 electric two-wheelers and more than 1,000 electric three-wheelers as part of its fleet. It aims to scale to 100,000 EVs in the next 12-24 months.

Additionally, companies like Walmart-backed Flipkart and Zomato have announced targets to electrify their respective fleets by 2030.

“This directive from CAQM is a timely and necessary step for Delhi-NCR, a region consistently battling some of the highest pollution levels globally. It aligns with MoEVing’s mission to decarbonise urban logistics through our 100% electric fleet. We look forward to working alongside the government and other stakeholders to support the effective implementation of this policy,” said Vikash Mishra, CEO and Founder of MoEVing.

The company has a fleet of over 3,000 EVs and works with more than 75 customers across over 25 Indian cities.

Edited by Suman Singh