Tamil Nadu's Small EV Makers Face Hurdles Over Unapproved Vehicle Models

Electric vehicle (EV) manufacturers in Tamil Nadu are urging the central and state governments to grant approvals for smaller vehicles such as e-rickshaws and e-carts, which currently lack recognition for on-road operation. This regulatory gap is hampering the development of the EV ecosystem, particularly for micro, small, and medium enterprises (MSMEs) that produce these low-speed passenger vehicles.

An EV in-house cart manufacturer, speaking on condition of anonymity, highlighted the disparity: “A cart that can seat six to 20 people, does not have doors, and runs at a maximum speed of 40 km per hour is permitted on roads in countries like the United States. But in India, there is no permission for such vehicles to be operated on road. They do not get road safety certificates, and hence are not eligible for loans or insurance.”

These e-carts and e-rickshaws are designed for last-mile connectivity, with applications ranging from shared auto services to garbage collection in remote areas. However, without type approval from the Ministry of Road Transport and Highways, they cannot be registered with regional transport offices (RTOs), cutting off access to bank financing and insurance coverage.

Director of Eco Dyne Group, Vijayan Srinivasan, pointed to Uttar Pradesh as a contrasting example: “Uttar Pradesh has over 100 MSME suppliers of e-rickshaws. But these vehicles cannot be registered in Tamil Nadu. When a vehicle model does not get approvals, the entire MSME ecosystem for EVs struggles to develop. There is a requirement for components, innovation, and new vehicle development, but lack of recognition and on-road operation permissions result in poor flow of funds.”

Coimbatore, a traditional hub for auto component manufacturing, hosts several EV startups that face these challenges. Industry stakeholders say the absence of a clear regulatory framework for small EVs stifles innovation and discourages investment. They call for proactive policies from both the Centre and the State to encourage new vehicle models, ensure access to funds, and help the small EV segment grow.

The issue underscores a broader gap in India's EV policy, which has primarily focused on two-wheelers and four-wheelers for personal transport, while neglecting utility vehicles essential for public transport and commercial use in semi-urban and rural areas.