LOW-SPEED ELECTRIC vehicles (EVs) such as Yulu ,Zypp Electric, YC Electric, Mahindra Last Mileand Lohia, which currently operate under lighter norms, may soon face tighter regulatory standards. Sources said that the government wants to bring them under a formal framework for certification, registration and safety compliance.
At present, EVs with a top speed of up to 25 kmh and motor power below 250W can be sold without formal certification or registration, provided, their unladen weight, excluding the battery, is under60 kg. These vehicles, which include delivery trikes, last-mile scooters and e-cycles, are required to only meet the minimal safety features under the Central Motor Vehicles Rules (CMVR).
The ministry of heavy industries (MHI) is now planning to formally approach the ministry of highways (MoRTH) to road transport and revise these guidelines. Officials said the proposal would seek mandatory testing and certification, through authorised agencies, to ensure stricter compliance with speed, weight and power standards.
Low-speed EVs have so far been exempt from insurance, registration and helmet requirements, making them a popular choice for last-mile mobility solutions. With the rapid expansion of players like Yulu and Zypp Electric, the government is looking to balance the sector’s growth with enhanced safety and accountability.
The industry has suggested that all low-speed vehicles should undergo mandatory testing at one of the four MHI- accredited centres: the Automotive Research Association of India (ARAI), International Centre for Automotive Technology (iCAT), Global Automotive Research Centre (GARC) and National Automotive Test Tracks (NATRAX). Over half a million low-speed EVs are currently plying on the roads, driven by a surge in e-commerce deliveries and urban mobility needs. Companies like Yulu and Zypp Electric have become major forces in this segment, with Yulu even achieving uni- corn status, Traxcn data said.
Low-speed vehicle market was valued at $11.47 billion in 2024 and may grow at a CAGR of 8.4% from 2025 to 2032, reaching nearly $21.88 billion, Markets and Markets data said.