FADA Opposes Proposed Ban On CNG Three-Wheeler Registrations

Federation of Automobile Dealers Associations (FADA) has raised concerns over the proposed restriction on new registrations of CNG-powered three-wheelers, stating that such a move runs counter to the government’s existing clean fuel framework, ETAuto reported.

The Delhi chapter of FADA has written to the chairman of the Commission for Air Quality Management, opposing any plan to halt registrations of CNG three-wheelers. In its communication, the association has also sought the introduction of a structured, scrappage-linked renewal scheme for the segment.

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The representation follows a directive issued by the CAQM mandating a phased transition to electric three-wheelers in the Delhi-NCR region. The order requires that only electric three-wheelers in the L5 category, covering both passenger and goods carriers, be registered in a phased manner over the coming years.

According to the directive, registrations of such vehicles will be limited to electric models from 1 January 2027 in Delhi. The mandate will extend to high vehicle density districts including Gurugram, Faridabad, Sonipat, Ghaziabad and Gautam Buddha Nagar from 1 January 2028, and to the remaining NCR districts from 1 January 2029.

The CAQM said the decision was based on findings that the vehicular sector remains a significant contributor to PM2.5 emissions in the region. It cited recommendations from an expert committee, constituted in December 2025, which advocated an accelerated shift towards electric mobility in the three-wheeler segment.

FADA, however, maintains that restricting CNG registrations contradicts earlier policy direction, particularly the transition to cleaner fuels that began during the Sheila Dikshit administration, and has urged policymakers to consider a more structured approach to fleet transition.