“Quadricycles are compact four-wheelers for passenger and goods transport, classified under L7M and L7N categories, largely manufactured in India for export.”
New Delhi: In a significant policy move aimed at improving product quality and boosting domestic manufacturing, the Union government has notified dedicated testing and performance norms for electric quadricycles under the ₹25,938-crore Production-Linked Incentive (PLI) scheme for automobiles and auto components. The new rules tighten eligibility by linking vehicle testing standards with local value-addition requirements, officials said.
According to a notification issued on 13 January by the Ministry of Heavy Industries (MHI), testing norms for electric vehicles (EVs) under the PLI-Auto scheme have been upgraded and aligned with localisation criteria prescribed under the PM E-DRIVE scheme, which has replaced the earlier FAME-II programme.
Clear benchmarks for electric quadricycles
For the first time, the government has formally defined performance benchmarks for electric quadricycles, a niche but export-oriented segment of India’s automobile industry. Under the new norms, electric quadricycles must offer a minimum driving range of 80 km per charge and limit energy consumption to less than 12 kilowatt-hours per 100 km.
Range refers to the distance an EV can travel on a full charge, while lower energy consumption reflects higher efficiency. These parameters will now be used by government testing agencies to determine whether a particular model qualifies for incentives.
Testing agencies such as the Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT) will be responsible for evaluating electric quadricycles against the new standards.
Quality assurance and market confidence
Industry experts say the move is crucial to ensuring better-quality electric vehicles enter the market.
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“Performance criteria for the battery and vehicle are critical to ensure product quality. This is especially important given past experiences of sub-par vehicles being launched,” said Sharif Qamar, associate director of transport and urban governance at the The Energy and Resources Institute (TERI).
By linking testing with localisation, the government is also signalling that incentive support will increasingly favour manufacturers who invest in domestic supply chains and higher engineering standards.
What are quadricycles?
Quadricycles are small four-wheeled vehicles used to carry passengers or goods and are categorised under L7M (passenger) and L7N (goods) vehicle classes. Often described as “microcars,” they occupy a space between three-wheelers and conventional cars.
India is already a major manufacturing base for quadricycles, with most production aimed at overseas markets. Data from the Society of Indian Automobile Manufacturers (SIAM) shows that more than 4,900 units nearly 98% of the 5,090 quadricycles produced in calendar year 2025 were exported.
Export competitiveness in focus
Experts believe the introduction of performance-linked incentives could strengthen India’s position in global markets.
“The performance criteria under the PLI give OEMs and component manufacturers a chance to compete internationally. Quadricycles are largely export-oriented, and this will give Indian manufacturers an edge in African, South Asian and Latin American markets,” Qamar added.
Electric quadricycles qualify for incentives under the PLI-Auto scheme as they are classified as advanced automotive technology vehicles, according to publicly available eligibility norms.
Domestic market yet to take off
Despite policy support, electric quadricycles have seen no sales in India over the past two years, according to Vahan database records. Most quadricycles currently sold domestically continue to run on compressed natural gas (CNG).
Among manufacturers, Bajaj Auto has sold the highest number of quadricycles in India during this period around 340 units, Vahan data shows. Other companies such as Hyundai Motor India, Mahindra & Mahindra, Mercedes-Benz AG, and Maruti Suzuki India reported negligible volumes.
Queries sent to the MHI and leading automakers on 15 January remained unanswered at the time of publication.
Electric ‘Qute’ in the pipeline
Bajaj Auto has, however, indicated plans to enter the electric quadricycle space. During a Q4FY24 earnings call, executive director Rakesh Sharma said the company is working on an electric version of its Qute quadricycle.
“We are investing behind the Qute platform. With earlier BS-IV and BS-VI transitions, volumes were limited, but we are now looking at an upgrade. We already have a CNG-based Qute and will be working on an electric Qute as well,” Sharma said in April 2024.
Localisation remains mandatory
Under the PLI-Auto scheme, manufacturers must meet 50% localisation requirements, meaning at least half of the vehicle’s components must be sourced domestically. This condition applies equally to electric quadricycles seeking incentives.
In an August 2024 report, government think tank NITI Aayog noted that manufacturers had sought better alignment between EV schemes. The industry had called for a “single-till” approach between PLI-Auto and PM E-DRIVE, so vehicles qualifying under one scheme would automatically be eligible under the other.
Policy signal to the industry
With the new testing and localisation-linked norms, policymakers appear to be responding to these concerns while also tightening oversight. Analysts say the move sends a clear signal: future EV incentives will increasingly depend on quality, efficiency, and domestic value addition.
As India looks to expand its footprint in global EV and micro-mobility markets, electric quadricycles once a fringe segment may now get a structured policy push, provided manufacturers step up with compliant and competitive models.
