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3 Jan 2026·Source: The Hindu
3 min
EconomyScience & TechnologyEnvironment & EcologyNEWS

Government Allows Private EVs for Shared Taxi Services to Boost Green Mobility

Centre permits private EVs to be used as shared taxis, aiming to accelerate EV adoption and sustainable transport.

Government Allows Private EVs for Shared Taxi Services to Boost Green Mobility

Photo by Brian Wangenheim

In a significant move to accelerate electric vehicle (EV) adoption and promote sustainable urban mobility, the Ministry of Road Transport and Highways has directed states and Union Territories to allow private electric vehicles (EVs) to be used as shared taxis. This policy aims to leverage the existing fleet of private EVs, reduce congestion, and lower carbon emissions in cities. Currently, many states restrict private vehicles from being used for commercial purposes.

This directive seeks to streamline regulations, encouraging EV owners to participate in ride-sharing platforms and making EVs more economically viable. This initiative aligns with India's broader goals of achieving net-zero emissions and transitioning towards a greener transportation ecosystem, potentially transforming urban commute patterns and boosting the EV charging infrastructure.

Key Facts

1.

Ministry of Road Transport and Highways directed states/UTs

2.

Private EVs allowed for shared taxi services

3.

Aims to boost EV adoption and sustainable mobility

4.

Many states currently restrict private vehicles for commercial use

UPSC Exam Angles

1.

Government policies and initiatives for green mobility and EV adoption.

2.

Economic implications: shared economy, gig economy, economic viability of EVs, impact on traditional transport.

3.

Environmental impact: carbon emissions, net-zero targets, air quality.

4.

Regulatory framework: Motor Vehicles Act, federalism in transport, role of states.

5.

Infrastructure development: EV charging network, smart cities.

6.

Technological aspects: battery technology, EV performance.

Visual Insights

India's EV Adoption & Infrastructure Progress (Jan 2026)

This dashboard highlights key metrics reflecting India's progress in electric vehicle adoption and the development of supporting infrastructure, directly impacted by policies like allowing private EVs for shared taxis.

Total EV Sales (2025)
2.8 Million Units+45%

Reflects rapid growth in EV adoption across all segments, crucial for green mobility targets. The new policy aims to further accelerate this by increasing utilization.

EV Market Share (2025)
9% of total vehicle sales+3 percentage points

Indicates the increasing penetration of EVs in the overall automotive market, though significant room for growth remains to meet ambitious targets.

Public EV Charging Stations (Jan 2026)
18,000++80%

Growth in charging infrastructure is vital to address 'range anxiety' and support increased EV usage, especially for shared taxi services.

Non-Fossil Fuel Energy Capacity (Jan 2026)
215 GW+10 GW (YoY)

Directly supports the 'green' aspect of EVs, ensuring that the electricity powering them comes from clean sources, aligning with India's Net-Zero by 2070 goal.

Evolution of EV & Shared Mobility Policy in India (2013-2026)

This timeline illustrates the key policy milestones and regulatory developments that have shaped India's electric vehicle ecosystem and shared mobility sector, leading up to the current directive.

India's journey towards electric mobility and regulated shared transport began over a decade ago with strategic policy frameworks. This evolution reflects a growing commitment to green mobility, energy security, and urban sustainability, culminating in the current directive to integrate private EVs into shared taxi services.

  • 2013National Electric Mobility Mission Plan (NEMMP) 2020 launched - Vision for EV adoption.
  • 2015FAME India Scheme Phase I launched - Incentives for EV purchase.
  • 2019FAME India Scheme Phase II launched (extended till March 2024) - Focus on public transport, charging infra.
  • 2019Motor Vehicles (Amendment) Act enacted - Provisions for aggregators, road safety.
  • 2020MoRTH issues Guidelines for Motor Vehicle Aggregators - Regulating ride-sharing platforms.
  • 2021PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage launched - Boosting domestic battery manufacturing.
  • 2022Battery Waste Management Rules notified - Extended Producer Responsibility (EPR) for battery recycling.
  • 2024FAME II scheme concludes; discussions for FAME III or new comprehensive EV policy framework begin.
  • Jan 2026MoRTH directs states/UTs to allow private EVs for shared taxi services - Current News.
More Information

Background

India has been actively promoting electric vehicle (EV) adoption to combat air pollution, reduce reliance on fossil fuel imports, and meet its climate change commitments. Schemes like FAME India have provided demand-side incentives. However, challenges like high upfront costs, range anxiety, and inadequate charging infrastructure persist. The regulatory framework, particularly concerning the commercial use of private vehicles, has also been a bottleneck.

Latest Developments

The Ministry of Road Transport and Highways (MoRTH) has issued a directive allowing private electric vehicles (EVs) to be used as shared taxis across states and Union Territories. This move aims to leverage the existing fleet of private EVs, promote green mobility, reduce urban congestion, and make EV ownership more economically viable by enabling owners to earn income through ride-sharing platforms. This streamlines regulations that previously restricted private vehicles from commercial use.

Practice Questions (MCQs)

1. Consider the following statements regarding the recent directive on private Electric Vehicles (EVs) for shared taxi services and related initiatives: 1. The directive was issued by the Ministry of Road Transport and Highways to promote green mobility. 2. The FAME India scheme primarily aims to provide financial incentives for the purchase of electric and hybrid vehicles. 3. India has committed to achieving Net-Zero emissions by 2050 as part of its climate action plan. Which of the statements given above is/are correct?

  • A.1 only
  • B.1 and 2 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is correct as per the news. The Ministry of Road Transport and Highways directed states to allow private EVs for shared taxi services. Statement 2 is correct. The FAME (Faster Adoption and Manufacturing of Electric Vehicles) India scheme is designed to promote the adoption of electric and hybrid vehicles by offering demand incentives. Statement 3 is incorrect. India has committed to achieving Net-Zero emissions by 2070, not 2050.

2. In the context of regulating motor vehicles and transportation services in India, consider the following statements: 1. Road transport falls exclusively under the Union List of the Seventh Schedule of the Constitution of India. 2. The Motor Vehicles Act, 1988, empowers state governments to make rules for the use of motor vehicles in public places. 3. The recent directive by the Ministry of Road Transport and Highways automatically overrides all existing state-specific restrictions on private vehicles for commercial use. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 only
  • C.1 and 3 only
  • D.2 and 3 only
Show Answer

Answer: B

Statement 1 is incorrect. Road transport is primarily a subject of the Concurrent List, allowing both the Union and State governments to legislate, though certain aspects like national highways are under the Union List. Statement 2 is correct. The Motor Vehicles Act, 1988, provides a framework, but state governments have significant powers to frame rules for the use of motor vehicles, including commercial operations. Statement 3 is incorrect. While the MoRTH directive 'directs' states and UTs, it does not automatically override existing state laws. States still need to amend their specific rules and regulations to implement the directive, reflecting the federal structure of India.

3. Assertion (A): Allowing private Electric Vehicles (EVs) for shared taxi services can significantly contribute to India's net-zero emissions targets. Reason (R): This policy promotes a shift from fossil fuel-powered vehicles to electric vehicles, thereby reducing carbon emissions from the transport sector. In the context of the above two statements, which one of the following is correct?

  • A.Both A and R are true and R is the correct explanation of A.
  • B.Both A and R are true but R is not the correct explanation of A.
  • C.A is true but R is false.
  • D.A is false but R is true.
Show Answer

Answer: A

Both Assertion (A) and Reason (R) are true, and R is the correct explanation of A. The core objective of promoting EVs, especially in shared mobility, is to replace conventional internal combustion engine vehicles, which are major contributors to greenhouse gas emissions. This shift directly contributes to reducing the carbon footprint of the transport sector, aligning with India's net-zero goals.

4. Which of the following is NOT a major challenge for the widespread adoption of Electric Vehicles (EVs) in India?

  • A.High upfront cost of EVs compared to conventional vehicles.
  • B.Limited availability and density of public charging infrastructure.
  • C.Concerns regarding battery range and degradation over time.
  • D.Lack of indigenous manufacturing capabilities for EV components.
Show Answer

Answer: D

Options A, B, and C are indeed major challenges for widespread EV adoption in India. High upfront cost makes EVs less accessible, limited charging infrastructure causes range anxiety, and concerns about battery life and performance deter potential buyers. While indigenous manufacturing capabilities for EV components are still developing and present a challenge for self-reliance, it is not considered the *primary* or *most significant* barrier to *widespread consumer adoption* compared to the direct consumer-facing issues of cost, infrastructure, and range anxiety. India is actively promoting domestic manufacturing through schemes like PLI for ACC batteries.

5. Match List-I with List-II and select the correct answer using the code given below: List-I (Initiative/Concept) 1. FAME India Scheme 2. PLI Scheme for ACC Batteries 3. National Green Hydrogen Mission 4. Vehicle Scrappage Policy List-II (Primary Objective) A. Promoting advanced battery manufacturing B. Reducing vehicular pollution and promoting circular economy C. Accelerating adoption of electric and hybrid vehicles D. Developing a national green hydrogen ecosystem Code:

  • A.1-C, 2-A, 3-D, 4-B
  • B.1-A, 2-C, 3-D, 4-B
  • C.1-C, 2-D, 3-A, 4-B
  • D.1-B, 2-A, 3-D, 4-C
Show Answer

Answer: A

1. FAME India Scheme (Faster Adoption and Manufacturing of Electric Vehicles) aims to accelerate the adoption of electric and hybrid vehicles (C). 2. PLI Scheme for ACC Batteries (Production Linked Incentive Scheme for Advanced Chemistry Cell Batteries) aims to promote domestic manufacturing of advanced batteries (A). 3. National Green Hydrogen Mission aims to develop a national green hydrogen ecosystem for energy transition (D). 4. Vehicle Scrappage Policy aims to phase out old, polluting vehicles, thereby reducing vehicular pollution and promoting a circular economy (B).

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