New Delhi, January 17, 2026
The central government has introduced strict new performance and manufacturing rules for electric quadricycles under the ₹25,938-crore Production-Linked Incentive (PLI) scheme, aiming to boost the quality of electric vehicles and strengthen domestic manufacturing. The Ministry of Heavy Industries issued the updated notification on January 13, making compliance mandatory for companies seeking financial incentives under the PLI-Auto Program.
New Performance Standards for Electric Quadricycles
The revised rules outline two key conditions:
Minimum Range:
Electric quadricycles must deliver at least 80 km on a full charge.Energy Consumption:
Vehicles must consume less than 12 kWh per 100 km, ensuring high energy efficiency.
Testing and certification of these parameters will be conducted by government-approved agencies such as the Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT).
Only models meeting these standards will be eligible for PLI incentives.
Focus on Quality and Export Competitiveness
According to Sharif Qamar, Associate Director at TERI, the updated rules will prevent the entry of poor-quality EVs and ensure consumer safety. He noted that past cases of low-quality EV launches highlight the need for stringent norms.
Quadricycles—small four-wheel vehicles used for carrying passengers (L7M category) and cargo (L7N category)—have a strong export market.
Data from SIAM shows that 98% of the 5,090 quadricycles produced in India in 2025 were exported, particularly to Africa, South Asia, and Latin America.
The new standards could further enhance India’s competitiveness in these regions.
Market Scenario: No Electric Quadricycle Sales in Two Years
According to Vahan portal data, not a single electric quadricycle has been sold in India in the last two years. The segment remains dominated by CNG models, especially those from Bajaj Auto, the market leader, which sold 340 quadricycles in the past two years.
Bajaj Auto Executive Director Rakesh Sharma announced in April 2024 that the company is investing in an electric version of its popular ‘Qute’ model, signaling potential revival in the EV quadricycle category.
Mandatory 50% Localization Requirement
To qualify for PLI incentives, manufacturers must meet a 50% localization threshold, meaning half of the vehicle’s components must be produced domestically. This rule aligns with the government’s push for local value addition under the PM e-Drive scheme, which replaced the earlier FAME-II program.
Industry Outlook
The new rules are expected to push EV makers toward improved battery quality, more robust designs, and higher efficiency standards. While the norms may pose short-term challenges for manufacturers, experts say they will boost long-term reliability, safety, and export potential of India-made EV quadricycles.
