The conflict in West Asia has once again reminded the world of an uncomfortable truth — severe energy dependency is a structural vulnerability, not a temporary inconvenience. For emerging economies such as India, which imports more than 85% of its crude oil requirements, such events can quickly test energy security and economic resilience.
Over the past decade, the government has placed enormous emphasis on transport-sector decarbonisation, with multiple schemes rolled out to support Electric Vehicles (EVs) and create long-term demand.
These efforts are beginning to show results, with EVs now accounting for 8.5% of total new vehicle sales in India in FY25-26.
However, the transition is happening in new vehicle sales, while the existing pool of over 30 crore Internal Combustion Engine (ICE) vehicles on Indian roads continue to run entirely on imported petroleum.
That is where vehicle retrofitting enters the picture. It is the process of replacing a vehicle’s engine, exhaust system, and related components with an electric battery pack, motor, and control systems to convert it into an EV.
The case for retrofitting is strongest when viewed through India’s own cultural and economic lens. India has always valued repair, reuse, refurbishment, and life extension. Even when it comes to household appliances and electronics, the instinct has traditionally been to maximise utility before replacement. Retrofitment fits naturally within that ethos.
The logic is simple. Instead of forcing millions of functioning petrol two-wheelers into premature retirement, existing vehicles can be converted into EVs through certified retrofit kits. The chassis remains. The identity remains. The emotional connection remains. Only the powertrain changes.
Many middle-class households do not see a vehicle that still works as scrap merely because policy language categorises it as “old”. In many cases, the structure is sound, the frame is usable, and the vehicle still has years of service left. What becomes burdensome is the rising fuel cost, maintenance pressure, and declining reliability of an ageing engine. Retrofitment addresses this gap.
It is cheaper, not just compared to buying a new EV, but also compared to purchasing a new ICE vehicle. More importantly, it democratises the EV transition for consumers who may otherwise remain excluded from India’s new-age electric market. So, retrofitment is more than a technical or economic solution. It is a social intervention. The environmental case is just as compelling. When functioning vehicles are discarded, the result is not merely lost utility, but also avoidable waste, disposal pressure, and resource intensity. Retrofitting extends the life of existing assets, reduces unnecessary scrappage, and supports a more circular mobility economy.
Moreover, a strong retrofit ecosystem can generate decentralised employment across technicians, service centres, electrical integration specialists, battery management services, software calibration, refurbishment supply chains, and rural mobility entrepreneurship. Unlike large centralised automotive manufacturing, retrofit ecosystems can scale through distributed employment models.
Scalable model
Globally, the idea is gaining traction. Countries across Europe are examining circular mobility models as part of their broader climate goals while Nepal has moved towards permitting and supporting retrofit solutions.
Support for retrofitment can be mainstreamed in India. The first Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme included retrofitment support, but it gradually disappeared from the conversation. Even so, some States have begun to acknowledge its potential.
Madhya Pradesh has taken steps toward building a more favourable ecosystem through upfront subsidies, a one-stop portal for subsidy access, and Statewide retrofitment agency registration instead of registrations via Regional Transport Offices (RTOs).
The market itself is maturing faster than the policy framework. Initial scepticism around legality, registration, insurance, safety, and reliability was understandable when the sector was nascent. But the ecosystem has evolved. Certified retrofit companies are now working alongside testing agencies, insurers, financiers, and transport authorities. Real-world adoption numbers are rising, and after the West Asia conflict, enquiries have reportedly doubled. The market is signalling confidence.
India needs a comprehensive national retrofitment framework. First, retrofit policies must be standardised across States. Second, financing institutions can formally recognise retrofitted vehicles as financeable assets. Third, India should create robust certification and safety standards to eliminate low-quality informal conversions that can erode consumer trust. Fourth, Goods and Services Tax (GST) treatment may be rationalised so that retrofitment kits are not taxed at a disadvantage compared with EVs. Fifth, retrofitment data has to be made publicly available. Finally, the latest PM E-DRIVE scheme that extends subsidy support to zero-emission trucks may also consider retrofitment.
As the world navigates oil vulnerability, India has an opportunity to think differently and choose between treating old vehicles as scrap, or recognise them as assets capable of transformation.
Jaideep Saraswat is the Associate Director of the Clean Power, Electric Mobility & Emerging Technologies vertical at Vasudha Foundation. Ashish Dokania is the CEO of Green Tiger Mobility Private Limited. The authors declare no competing interests.
Published – July 09, 2026 07:00 am IST