New Delhi: Indian automakers are lobbying against the Centre’s plan to introduce standardized energy-efficiency star-based rating for electric two-wheelers (e2Ws), according to three people close to the matter and a draft correspondence reviewed by Mint.
The Society of Indian Automobile Manufacturers (SIAM), which counts four of the top five e2Ws makers by market share—Hero MotoCorp Ltd, Bajaj Auto Ltd, Ather Energy Ltd and TVS Motor Co. Ltd—as members, has discussed the proposal and is of the view that e2Ws are still not self-sustaining and remain reliant on subsidies and incentives, the people cited above said on condition of anonymity.
“There were discussions on this last week within the industry, and the plan is to seek a deferral, as the e2W segment is still nascent,” said one of the three people.
The automakers believe e2Ws can be sold with star ratings once adoption picks up, according to a draft letter from SIAM that is likely to be sent to the Bureau of Energy Efficiency (BEE).
“Customers started adopting EVs (electric vehicles) gradually, overcoming anxiety about new technology. Imposing efficiency rating labels at this stage risks weakening customer confidence and deterring the growth of EV adoption,” the draft letter read.
The SIAM letter also said that imposing energy efficiency regulation on e2Ws before electric motorcycle models enter the market could “disproportionately penalize innovation and investment towards adoption of electric motorcycles.”
Energy optimization
Mint reported on 17 June that BEE, India’s energy efficiency regulator under the Union power ministry, had begun talks to include e2Ws under its star rating regime, initially voluntarily, modelled on the system for electrical appliances, in which a higher rating indicates greater energy efficiency, lower electricity bills and a smaller carbon footprint.
The energy efficiency of e2Ws, according to BEE, is integral to India’s green energy transition, given that energy consumption among e2Ws varies significantly from about 2.2kWh per 100km to over 5kWh, indicating room for improvement, Mint reported earlier.
“It is not that the industry is not in favour of having a star rating for e2Ws. But we need to ensure that this vehicle segment is self-sustaining first,” said a second person.
The automakers’ resistance comes at a time when e2W adoption is rising in the country. It recorded sales of 1.4 million e2Ws in 2025-26, up 20% year-on-year, according to the government’s Vahan registry of new vehicles sold. A total of 21 million two-wheelers were sold in the world’s largest scooter and motorcycle market in FY26.
India, the world’s largest two-wheeler market by sales, is also the world’s second-largest e2W market after China, according to the International Energy Agency.
Prime Minister Narendra Modi on Saturday said in his Independence Day address from the Red Fort in New Delhi that India was making progress in clean mobility, with annual EV sales rising to more than 2.5 million in 2025-26.
Meanwhile, on 10 August, the ministry of heavy industries extended the country’s flagship EV subsidy scheme for e2Ws until 2027-28, from its earlier end date of 31 July 2026, and added ₹1,000 crore to the subsidy fund, according to a government notification.
Mint's queries emailed to the ministry of power, BEE, Siam, and e2W makers Ather Energy, Hero MotoCorp, TVS Motor Co., Bajaj Auto, and Ola Electric early on 14 August remained unanswered.
Practicality
Experts say star ratings for consumer electronics can be fixed, but e2Ws are dynamic entities.
“Star ratings on how efficient things are can be fixed for things that are standardized like air conditioners. For dynamic entities like scooters and motorcycles, star ratings cannot work, as they vary in how much battery power the vehicle uses, which is derived from the motor," said Deepesh Rathore, founder and head of research at InsightEV, an electric two-wheeler consultancy.
"For a segment that's still in early stages and growing, these regulations could add distractions for the brands,” Rathore added.