FADA Urges CAQM to Reconsider CNG Auto-Rickshaw Registration Ban in Delhi-NCR, Proposes Scrappage-Linked Replacement Scheme

The Federation of Automobile Dealers Associations (FADA) has formally urged the Commission for Air Quality Management (CAQM) to reconsider its directive banning new registrations of CNG-powered three-wheelers in Delhi-NCR, arguing that the policy contradicts India’s own clean fuel architecture and could undermine both emission reduction goals and local livelihoods. In a letter to the CAQM chairman, FADA’s Delhi chapter warned that restricting new CNG auto registrations would not immediately remove older, more polluting vehicles from the roads, as those with valid permits would continue to operate. Instead, the association advocated for a scrappage-linked replacement programme to accelerate the retirement of BS-IV and older three-wheelers in favour of BS-VI-compliant CNG models or electric vehicles.

The CAQM has mandated that only electric L5-category three-wheelers be registered in Delhi from January 1, 2027, with the requirement extending to high-vehicle-density districts including Gurugram, Faridabad, Sonipat, Ghaziabad, and Gautam Buddha Nagar from January 2028, and to the remaining NCR districts from January 2029. The commission cited an expert committee report recommending accelerated electric three-wheeler adoption as part of efforts to reduce vehicular emissions—identified as a major contributor to PM2.5 pollution in the region. The draft Delhi EV Policy also echoes this timeline.

FADA countered that the restriction “blocks the cleaner vehicle (CNG) while permitting the dirtier incumbent to remain,” effectively inverting its own objectives. The association noted that CNG three-wheelers serve as a critical backbone for last-mile transportation in Delhi-NCR, supporting the livelihoods of approximately 100,000 auto-rickshaw permit holders, along with thousands of dealership employees, financiers, and fleet operators. A registration ban, FADA warned, would foreclose fleet renewal and cause economic disruption.

As an alternative, FADA proposed a structured vehicle replacement scheme that incentivises owners of older three-wheelers to transition to BS-VI CNG or electric alternatives. The association believes such a programme could yield more immediate environmental benefits while minimising disruption to affordable public transport services. The debate continues as policymakers finalise the next phase of Delhi’s electric vehicle strategy, with consultations ongoing.