IsraelIndia has introduced policies to restrict the import of fuel-powered engineering vehicles

Key Points of India's Import Restriction Policy for Fuel-powered Engineering Vehicles (2025)

I. ‌ Policy framework and implementation path ‌

City-level sales ban plan ‌

New Delhi, the capital of India, has taken the lead in formulating a purchase restriction order for fuel vehicles, clearly stating that the sale of fuel vehicles will be completely banned starting from April 2027, and import restrictions will be imposed on high-fuel-consumption fuel motorcycles. This policy also proposes a "dual-fuel vehicle household quota", stipulating that each household can own a maximum of two fuel vehicles, to promote the penetration rate of new energy engineering vehicles.

Extended effect ‌ : Diesel engineering vehicles imported must meet BS-VI emission standards; models that do not meet the standards will not be able to pass customs certification.

Phasing out of old vehicles accelerates ‌

For the existing market, starting from April 2025, New Delhi will ban refueling gasoline vehicles over 15 years old and diesel vehicles over 10 years old. High-pollution engineering vehicles will be forcibly phased out through the vehicle age identification system at gas stations.

Ii. Youdaoplaceholder0 Market access and technical barriers ‌

Specific requirements for restrictive measures

Emission Certification upgrade ‌ Imported fuel-powered engineering vehicles must pass the latest tests by the Central Motor Vehicle Authority (CMVR) of India, with nitrogen oxide emission limits tightened by 40% compared to the old standards

Local Production BINDING ‌ Foreign automakers must commit to building new energy engineering vehicle production lines in India in order to obtain fuel vehicle import quotas

Tax adjustment ‌ The import tariff on hybrid engineering vehicles has been reduced to 15%, while the benchmark rate for pure fuel vehicles remains at 28%, creating a price scissors difference

Iii. Youdaoplaceholder0 Incentives for alternative new energy solutions ‌

Mandatory penetration of infrastructure projects ‌ : From 2025, new energy engineering vehicles will account for no less than 30% of the bidding for large infrastructure projects in Delhi, with priority given to electric loaders, hybrid pump trucks and other categories.

Supply Chain Localization subsidy ‌ : Electric engineering vehicles using Indian homegrown batteries are eligible for a central government subsidy of 10% of the selling price (up to RS 500,000 per unit).

Iv. Youdaoplaceholder0 Industry Impact and Challenges ‌

Import volume shrinks ‌

In the first quarter of 2025, the import volume of fuel-powered engineering vehicles in India decreased by 23% year-on-year. Among them, Chinese enterprises such as Sany Heavy Industry and XCMG are accelerating their transformation to electric models to cope with policy changes.

Domestic companies play ‌

Indian automakers such as Tata Motors and Mahindra have jointly lobbied the government to ease restrictions on hybrid engineering vehicles, but the environmental protection department insists on the goal of full electrification by 2030.

India is systematically reducing the import space of fuel-powered engineering vehicles through a combination policy of phasing out existing ones ‌, restricting new ones and incentives for new energy ‌. It is expected that the market share of new energy engineering vehicles will exceed 45% by 2027.