India’s Supreme Court Proposes Ban on Luxury Fuel-Powered Cars to Accelerate EV Adoption

IT Home reported on November 20 that India, the world’s most populous country, has seen electric vehicle adoption progress more slowly than policymakers expected. In response, the Indian Supreme Court has proposed a new strategy: urging the government to consider phasing out luxury fuel-powered vehicles to promote cleaner mobility.

Supreme Court judges encouraged the government to adopt targeted measures, suggesting that the phaseout of internal combustion engine (ICE) vehicles should begin with high-end and luxury segments. The proposed ban would cover not only traditional fuel-powered cars but also hybrid and plug-in hybrid models.

The court believes this “top-down” approach could serve as a pilot for a “phased transition” toward electric mobility. The rationale: imposing electrification requirements on high-end vehicles sends a clear market signal without affecting mass-market car prices, helping avoid shocks to the overall new-car market.

According to India Today, Justice Surya Kant noted that automakers already offer several high-end EVs whose comfort and performance rival comparable fuel-powered models. “Since these vehicles cater only to a small, affluent segment, restricting high-end petrol and diesel cars can be a starting point that won’t affect the daily lives of ordinary citizens,” he said.

Data from Autocar India shows that EVs already account for about 12% of sales in the high-end market segment—significantly higher than the 2%–3% penetration rate of the mass market.

Although luxury brands such as Mercedes-Benz and BMW have introduced sizeable zero-emission lineups in India, a ban on ICE vehicles would inevitably reshape their operations and could trigger ripple effects on employment and supplier investments.

According to IT Home, the proposal is not without controversy. Critics argue that luxury cars represent only a tiny share of India’s automotive landscape, meaning that even a full ban would have limited impact on reducing national carbon emissions.

Industry voices also point to a bigger problem: India’s aging vehicle fleet. Many believe the country’s current Scrappage Framework is poorly enforced, allowing large numbers of over-aged passenger cars and light commercial vehicles to remain on the road—major contributors to pollution.

At present, the proposal remains in its early stages, with no confirmed timeline. The Supreme Court has asked the government to re-examine the National Electric Mobility Mission Plan and will hold another hearing in December.

India’s Attorney General confirmed that the government is “open to the idea,” revealing that 13 ministries and agencies are already coordinating efforts on matters ranging from manufacturing incentives to charging infrastructure development.