HomeGovernment PoliciesChandigarh EV Policy: Non-Electric Two-Wheeler Registrations To End In July, Four-Wheelers To...

Chandigarh EV Policy: Non-Electric Two-Wheeler Registrations To End In July, Four-Wheelers To Follow In December

The decision of the Chandigarh government to stop the registration of two-wheelers and four-wheelers by July and December, respectively, has raised the bar in the market. This impact follows the government’s decision under the Electric Vehicles Policy 2022 revision. 

The event mentioned above has happened for real. This decision has turned the backs of vehicle sellers and customers. It is going to have an impact on all, just like other decisions and laws have. Knowing this decision in detail is essential before reaching any conclusion. In this write-up, we will discover the details of this news in an extended format.  

Chandigarh EV Policy Overview and Revision

The Chandigarh government recently announced the registration of two-wheelers and four-wheelers. As per their decision, they would stop registering ICE two–wheelers in July and four-wheelers in December, respectively. The main reason behind this decision is the revision of the Electric Vehicle Policy, 2022. Here is a little background on this vehicle policy of 2022:

  • The first target of the Chandigarh Union territory government was to reduce the number of two-wheelers and four-wheelers in the Union territory. 
  • Their goal was to reduce the percentage of two-wheelers up to 35% and the rate of four-wheelers by 10% in the first fiscal year. 
  • This goal changed the percentages of ICE two-wheelers and four-wheelers by 20% and 70%, respectively. 
  • The registration limit in the current year allows 6202 ICE two-wheelers and 22,626 four-wheelers only. 
  • The Chandigarh government has already received the registration requests of 4032 electric two-wheelers and 2685 electric four-wheelers. 
  • They have planned to decrease this number by revising this act by 2024 and reducing the number of registrations of electric vehicles for four-wheelers. 
  • They have declared that they would completely ban the registration of ICE four-wheelers after completing their targets. 
  • This decision has evoked a feeling of dissatisfaction among manufacturers and customers. They have expressed displeasure with this decision. Besides, they have requested the Union Territory Government to consider this decision again. 
  • The duration and deadlines of these targets are from the first week of July and the end of December, respectively.

These points have explained the basic features and overview of this vehicle act. This journey will take a lot from the people (customers), dealers, sellers, and manufacturers. Therefore, it would be better if the government considered this decision. They can go for one more alternative decision. They can move the dates forward to give some time to the people. However, let’s see what happens in the future. 

What would be the impact of this decision? 

The decision to restrict the registrations of two-wheelers and four-wheelers has many impacts on some people. Some people have openly expressed their opinions in favour of this decision. These points represent a summary of those points: 

  • This decision has brought tension and stress for the manufacturers in the automotive industry. They have been one of the most important employers in that region.
  • The prohibition of electric two-wheelers and four-wheelers would stop their income. 
  • Not only they sold vehicles, but also they sold electric parts, engines, components, and parts of non-electric vehicles. 
  • The reduction in registration would eventually lead to the loss of jobs and financial development. 
  • This decision would also lead to the availability of fewer choices for customers. It would lead to a monopoly in the electric vehicle market.
  • Since electric vehicles are expensive, this decision would push people to increase their budgets.
  • People would be forced to buy expensive electric two-wheelers in bulk before they come to market. 
  • The lack of a suitable choice of vehicle would leave people with a shortage of transportation means. 

As per the team members’ words, there are some possible impacts. The funds needed for this decision are a whopping INR 5 crores without property. The dealers concerned with this issue have an amount of INR 100 crores at stake. There will be a significant decrease in the number of dealerships, and they will go bankrupt. This decision would be severable to 10000 people.

Background of the Electric Vehicles Act Reviewing decision

Knowing the background details is essential before concluding the entire scheme. This write-up section will discuss the experience and facts that led to these reactions’ declaration. 

The electric two-wheeler registration was limited to 50 days in the last fiscal year. Their target is to complete 65% of registered vehicles by February 10. This point was the turning point that led to this decision. After this step, the UT government banned electric two-wheelers and four-wheelers. The initial date to implement this decision was April 1.

The dealers of Punjab and Haryana decided to move against this decision. They moved to the high court without success. They made some points to show their displeasure. These points are: 

  • This decision would affect more than ten thousand people connected as sellers, manufacturers, or customers.
  • They might need help with issues such as bankruptcy in the absence and lack of sufficient funds. The initial amount required to start this dealership was enough to drain their bank balance. This amount was five crores. 
  • This decision would also have a significant impact on the non-electric vehicles that have been sold. They won’t be able to carry out the servicing of the non-electric two-wheelers. 

These points represented the dilemma and displeasure of the manufacturers and sellers of electric two-wheelers and four-wheelers. It comes with a lot of risks and harms many people. They needed a lot of time to adjust to this change in the already existing act.

This act could also be a devastating decision for the dealers living off the commission gained from the sales of these vehicles. Therefore, the decision to restrict the number of registrations must be reconsidered. 

It would be a move that requires time and reconsideration. However, it is necessary, and people should come up together to act against it. Taking this step would lead to success in the efforts of people. 


The latest decision of the Chandigarh government to revise the registration of two-wheelers and four-wheelers in July and December, respectively, is a shock for many people. This decision has made many dealers and manufacturers restless as they would go bankrupt. Many people could lose their jobs and fall prey to unemployment and market monopoly risks. 

These impacts are estimated ones that people have imagined. However, this write-up has shared the background of this event. The disclosure of details has shown that they took this decision to some laws and issues. The union territory and officials have welcomed this decision as a step to walk with the latest norms. 



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