A government-appointed committee has suggested that all new passenger cars sold in Delhi-NCR must be zero-emission by 2030, with a 20% target set for 2027. The proposal aims to tackle severe air pollution but is facing strong pushback from CNG and ethanol industry groups. These groups argue that the focus should be on removing older, polluting vehicles from roads rather than restricting the choice of fuel technology for new car sales.
An expert committee under the Commission for Air Quality Management (CAQM) has proposed a significant transformation for Delhi’s automotive sector. Led by IIT Madras professor Ashok Jhunjhunwala, the committee has recommended a mandatory sales target for zero-emission vehicles, such as electric or hydrogen-powered cars, to reach 100% in Delhi-NCR by 2030. The roadmap includes an intermediate target, requiring at least 20% of new passenger vehicle sales to be zero-emission starting in 2027.
The proposal marks a move away from the current strategy, which supports a mix of cleaner fuels like CNG and ethanol. The committee, which includes public health experts like former AIIMS director Randeep Guleria, based its recommendation on public health concerns. With PM2.5 levels in the region frequently exceeding World Health Organization guidelines, the panel argued that traditional pollution controls have not been sufficient to protect residents from long-term health risks.
The recommendation has triggered resistance from industry associations representing the CNG, ethanol, and biogas sectors. These groups have officially challenged the proposal, claiming it unfairly favors battery-electric technology over other clean energy alternatives. They contend that the committee’s focus on new car sales ignores the core of the problem, citing data that suggests over 95% of vehicular pollution in Delhi comes from older vehicles that do not meet the current BS-VI emission standards. According to these industry bodies, a technology-neutral approach would better maintain market stability while addressing the primary sources of pollution.
Automakers that have invested heavily in CNG and multi-fuel engines, such as Maruti Suzuki, could face challenges if this mandate becomes official policy. If implemented, the decision would force a rapid shift in product strategy and distribution for companies that rely on a diverse range of fuel options to cater to price-sensitive consumers in the capital region. The industry argues that phasing out older, more polluting vehicles should be the priority, rather than setting strict mandates for new vehicle sales that might limit consumer options.
The CAQM is now responsible for evaluating the feasibility of these targets while managing the intense lobbying efforts from various fuel stakeholders. The outcome of these discussions will be important for investors to track, as any final policy could reshape the future product mix and sales strategy for major automakers operating in Northern India. The key monitorable remains how the regulator balances health-focused mandates with the industry's demand for a broader, technology-neutral approach to curbing emissions.