The Ministry of Road Transport and Highways has proposed raising the power limit for low-speed electric scooters from 250W to 600W while removing the 60 kg weight cap. While some manufacturers welcome the flexibility for better vehicle design, others like Yulu have raised concerns over safety and regulatory loopholes. The draft notification is currently under industry review.
The Ministry of Road Transport and Highways (MoRTH) has set the stage for a potential policy shift in the electric vehicle (EV) sector. In a draft notification released on August 21, 2026, the government proposed amending the Central Motor Vehicles Rules to increase the motor power limit for low-speed electric two-wheelers from 250 watts to 600 watts. Additionally, the proposal aims to remove the existing 60 kg unladen weight restriction. Under these proposed rules, vehicles would remain exempt from mandatory registration, insurance, and driving license requirements, provided their top speed does not exceed 25 kmph.
The industry, however, is deeply divided on this change. Some manufacturers, such as BGauss, support the proposal. They argue that the current constraints limit design innovation and that higher power and weight allowances would enable the creation of more robust vehicles suitable for personal mobility and last-mile delivery. For these firms, the move is seen as an opportunity to move away from light, potentially flimsy designs toward more professionalized, durable scooters.
Conversely, other market players, notably Yulu, have formally opposed the removal of the 60 kg weight limit. The primary concern is that allowing heavier, more powerful vehicles to operate without registration creates a regulatory loophole. Critics argue that even if these vehicles are electronically capped at 25 kmph, their increased power and weight could allow for easy post-sale modifications, enabling them to reach higher speeds and operate as unregistered, potentially dangerous high-speed vehicles on public roads. There is apprehension that this could lead to a gray market, where non-compliant or modified vehicles compromise road safety.
This debate highlights a significant challenge for regulators: balancing the need for technological advancement with the requirement for safety and strict enforcement. The low-speed EV segment is a growing part of India’s electric mobility space, with estimates projecting sales to grow from 1.8-2.1 lakh units in FY25 to 3.2-3.6 lakh units by FY27. For the industry, the core issue is whether the new standards will encourage better-quality vehicles or inadvertently incentivize a race to the bottom in terms of manufacturing standards.
The next step for investors and industry stakeholders will be the ministry's final decision on the draft notification. Market participants are waiting to see if the government will reintroduce safeguards, such as specific seating or payload limits, to address the safety concerns raised by objectors. The final version of these rules will ultimately determine whether this segment becomes a more efficient growth engine or continues to face policy uncertainty.