EV Manufacturers Raise Alarm Over Illegal E-Rickshaws and Poor-Quality Imports

Key Highlights:

• Over 4.75 lakh illegal e-rickshaws are running without number plates, insurance, or certification, causing safety risks.
• MSMEs are suffering, as these unregistered vehicles hurt the business of legal EV makers and affect jobs.
• Cheap EV parts from China are flooding the market, with many failing Indian quality standards.
• Local EV suppliers are losing ground, with their market share falling below 35% due to poor import regulations.
• EVMS wants strict action, including fitness checks, scrapping old e-rickshaws, and better control over imports.

The Electric Vehicle Manufacturers' Society (EVMS), which represents over 200 EV manufacturers, including many small-scale businesses, has expressed serious concerns about the growing number of illegal e-rickshaws and the rising use of low-quality imported components in India. The announcement was made at a press conference at the Press Club of India, led by Shri Rajiv Tulli, General Secretary of EVMS.

Over 4.75 Lakh Illegal E-Rickshaws on Roads

EVMS revealed that around 4.75 lakh unregistered e-rickshaws (three-wheeler) are currently running on Indian roads without any official approval. These vehicles lack essential elements like number plates, insurance, compliance tags, and approved spare parts. Most of them have never been tested or certified by authorised bodies. According to EVMS, this illegal segment is not only a safety risk for the public but also a major threat to registered EV manufacturers who follow proper guidelines.

MSMEs and Jobs at Stake

India’s e-rickshaw ecosystem is heavily dependent on micro, small, and medium enterprises (MSMEs). The sector directly employs over 50 lakh people and supports around 75 lakh jobs indirectly. Every day, it enables more than a billion eco-friendly kilometres of travel. Despite these contributions, MSMEs are being undercut by unregulated and unsafe vehicles that operate freely due to weak enforcement.

EVMS pointed out that legal e-rickshaws are often blamed for problems caused by uncertified vehicles, which leads to confusion and mistrust among consumers and authorities.

Rise in Unsafe Imports

Another key issue highlighted was the sharp rise in imports of low-quality EV parts, mainly from China. Between 2021 and 2024, motor imports grew from ₹320 crore to ₹870 crore, and controller imports jumped from ₹140 crore to ₹410 crore. Many of these components do not meet India’s required safety and performance standards.

Because of this, Indian MSME suppliers have lost significant ground in the market, now holding less than 35% of the share. EVMS said this goes against the spirit of India’s “Atmanirbhar Bharat” (self-reliant India) mission.

Lack of Scraping Policy and Weak Regulation

The association also criticised the absence of a scrapping policy for old and unfit e-rickshaws. In addition, there is limited space available to store and dismantle confiscated illegal vehicles. EVMS cited official data from RTI replies, court orders, and ministry circulars to support its demands for urgent reforms.

EVMS Demands Strict Action

EVMS has urged the government to implement stricter enforcement. It has called for mandatory fitness checks, immediate removal of illegal vehicles from public roads, and tighter control over imports. Shri Rajiv Tulli stressed that India’s electric mobility growth cannot come at the cost of public safety or domestic manufacturing.

He said, “India’s EV transition cannot be based on compromises, safety risks or reliance on substandard imports.” EVMS wants coordinated action from all stakeholders to ensure a safe, fair, and sustainable EV future for the country.

Also Read: Electric Three-wheeler Sales Report June 2025: YC Electric and Dilli Electric emerge as Top Choice

CMV360 Says

The concerns raised by EVMS are valid and require attention. Allowing illegal e-rickshaws and substandard imports not only risks public safety but also harms genuine manufacturers and the livelihoods they support. A strong regulatory push is needed to protect India’s EV growth from being disrupted.