Today, On 10th July, The Supreme Court rejected Bajaj Auto’s request to lift the cap on the number of auto rickshaws equipped with two-stroke engines operating in Delhi. Bajaj Auto sought the removal of restrictions limiting the presence of these vehicles in the capital.
New Delhi: The Supreme Court rejected Bajaj Auto’s request to remove the cap on three-wheelers in Delhi, a petition opposed by the State government. The court stated that it would not approve such an order merely at the manufacturer’s request.
Bajaj Auto aimed to eliminate the restriction on the number of two-stroke engine auto rickshaws in Delhi. The city currently around 92,000 CNG-powered auto rickshaws, with older vehicles being phased out.
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The Bench of Justice Abhay S. Oka and Justice Augustine George Masih stated,
“We are not considering an application from a private auto manufacturer. If we did, it would imply that the Court is being swayed by the commercial interests of an auto rickshaw manufacturer while deciding on an environmental issue. As a manufacturer, why should we act on your behalf? Our duty is to protect the environment, not to lift restrictions to benefit someone’s sales.”
The Court dismissed the application, stating that a request to remove the cap should not come from an auto rickshaw manufacturer but rather from the Government or a representative of the public interest.
Bajaj Auto filed an application in 2011 to raise the permit cap for Three-Seater Auto Rickshaws (TSRs) in the NCT of Delhi from 55,000 to 100,000. Bajaj Auto’s counsel argued that there had been no updates since 2011, despite the transition from twin-stroke engines to CNG.
Justice Oka questioned ,
“Where do you get this restriction?”
Justice Oka addressed the Counsel for Bajaj, stating,
“How can you argue that there should be no cap? We cannot permit environmental damage for your commercial interests. You want to do business.”
He further emphasized,
“The application must come from the authorities. If they determine that Delhi’s transport is inadequate, we will consider it, but not at the request of a manufacturer.”
Bajaj’s Counsel responded,
“EPCA recognizes the need, and the government supports it. The government has also filed an application, which is pending.”
Justice Oka reiterated,
“We will not entertain applications from manufacturers seeking to expand their business. If the State wishes to pursue this, they will file an application. Our primary concern is not to entertain applications from industries seeking to increase the cap on these vehicles for commercial reasons.”
The Respondent’s Counsel cited a Court order from November 11, 2011, which permitted the State Government to issue permits for up to 100,000 TSRs. The Respondent’s Counsel further noted that a transport audit in NCR, which is essential to determine the need for buses and TSRs, has not been implemented. She pointed out the existence of electric vehicles and E-rickshaws and highlighted the need for a fresh audit, as the current report from the Environment Pollution (Prevention & Control) Authority (EPCA) is from 2019 and outdated.
In 1997, the Supreme Court mandated a freeze on the number of auto rickshaws in Delhi, identifying them as contributors to the city’s pollution.
Previously, Bajaj Auto also challenged the Delhi government‘s decision to permit over 4,200 electric auto rickshaws, labelling the decision as ‘arbitrary’ and a limitation on market opportunities. This plea dismissed by the Supreme Court in late 2021.
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Bajaj Auto has been enhancing its e-three-wheeler offerings. During an earnings call in April 2024, CFO Dinesh Thapar mentioned that growth in the three-wheeler segment would be driven by e-autos and the expansion of the CNG network.
Thapar stated,
“Although we will maintain our market share in the internal combustion engine (ICE) segment, the primary growth driver will be electric vehicles, especially in markets where ICE vehicles face restrictions. This segment accounts for nearly 45 percent of the industry and is currently dominated by electric rickshaws, presenting a significant growth opportunity,”
With ICE three-wheeler permits being limited in half of the country, the company emphasized its vigorous efforts to promote electric autos.