Transport Ministry Proposes 5-Year Life Extension for EVs, Hydrogen, And CNG Vehicles

The Ministry of Road Transport and Highways (MoRTH) has proposed a fresh set of amendments to the Central Motor Vehicles Rules, 1989, signalling a stronger push towards cleaner mobility and a more digital transport ecosystem. The draft notification includes changes that could directly benefit electric vehicle owners, commercial fleet operators, and automotive component manufacturers, while also simplifying regulatory processes. Among the most notable proposals is an additional five-year operational life for cleaner-fuel vehicles, a move that could significantly improve the economics of green mobility in India.

Longer Lifespan Proposed For Green Vehicles

Under the draft amendment, vehicles powered by electricity, hydrogen, and compressed natural gas (CNG) could receive an additional five years of operational age compared to conventional petrol and diesel-powered vehicles.

The proposal is particularly significant for commercial operators and fleet owners, where vehicle replacement cycles are closely tied to business viability. Extending the usable life of cleaner vehicles could improve residual values, reduce ownership costs, and strengthen the case for transitioning away from fossil-fuel-powered fleets.

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At a time when India is targeting higher adoption of EVs and alternative fuels, a longer lifespan could also serve as a practical incentive alongside purchase subsidies and tax benefits.

National Permit System Set For Complete Digitalisation

MoRTH has also proposed a fully digital framework for National Permits, which are required by commercial vehicles operating across multiple states.

If implemented, permit applications, approvals, and related processes would move entirely online. The shift is expected to reduce paperwork, speed-up approvals, and eliminate much of the administrative burden traditionally associated with interstate transport operations.

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For fleet operators, this could translate into quicker vehicle deployment and less downtime related to permit processing.

Component Manufacturers May Get Trade Certificates

Another noteworthy proposal is the expansion of the trade certificate framework to include automotive component manufacturers.

Currently, trade certificates are largely issued to vehicle manufacturers and dealers. By bringing component makers into the system, the government aims to simplify the process of testing, transporting, and validating automotive parts.

The change could be particularly beneficial as India continues to position itself as a major automotive and component manufacturing hub, supporting both domestic demand and exports.

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Why This Matters For The Auto Industry?

Taken together, the proposed amendments indicate a broader policy direction focused on two priorities:

• Accelerating the adoption of low-emission and zero-emission vehicles
• Digitising regulatory processes to improve the ease of doing business

The proposed extension in vehicle life could make electric, hydrogen, and CNG vehicles more attractive from a total-cost-of-ownership perspective, while digital permits and streamlined certification processes could improve efficiency across the transport and manufacturing sectors.

What Happens Next?

The proposals are currently in the draft stage, meaning stakeholders and industry players will have an opportunity to provide feedback before the rules are finalised. If approved in their current form, the amendments could become one of the more impactful regulatory updates for India's mobility ecosystem in recent years.

For vehicle owners, fleet operators, and manufacturers alike, the message is clear: the government intends to make cleaner mobility not only greener, but also more practical and commercially viable.