Explained: Why India's battery recycling rules are worrying EV makers—and what it means for buyers
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Electric Vehicle (EV) makers have asked the central government to review India's battery recycling rules, saying they could make battery-powered vehicle a bit more costly and slow down adoption. The Society of Indian Automobile Manufacturers (SIAM), which represents leading vehicle manufacturers, has shared its concerns with the Central Pollution Control Board (CPCB).
The government wants old EV batteries to be collected and recycled instead of being discarded. While the auto industry supports this objective, it says some of the existing rules could add to manufacturers' costs without delivering the intended benefits.
What is the dispute about?
The government's rules make vehicle manufacturers responsible for ensuring that used EV batteries are collected and recycled. The auto industry body says complying with these rules will require companies to spend more on collecting, storing and tracking batteries. As per SIAM, these additional costs could increase EV prices by 3-5%.
The industry has estimated that compliance alone could add ₹8,000-₹25,000 to the cost of an average electric car battery.
Why are OEMs seeking changes?
Original Equipment Manufacturers (OEM) state that many EV batteries continue to work efficiently even after several years and can be reused before they are finally recycled. They argue that the current rules do not fully recognise this. As a result, companies may end up spending more on meeting regulatory requirements even when batteries still have useful life left.
The industry has also questioned how recycling targets are calculated, saying the present system could create extra costs and make compliance more difficult.
How could consumers be affected?
The biggest impact is likely to be on the retail prices. If manufacturers have to spend more to comply with the rules, a part of that cost could be passed on to buyers.
That could make EVs costlier at a time when many consumers are still comparing them with petrol and diesel vehicles. Higher prices could also slow the pace at which more people switch to electric mobility.
The government is now examining the domestic automobile industry’s suggestions. Its challenge will be to strike a balance between protecting the environment through responsible recycling and keeping electric vehicles affordable for Indian consumers.