Central ministries to prefer EVs for staff-car replacements

Central government ministries and departments will ordinarily buy an electric vehicle when replacing an internal-combustion staff car that has been declared unfit for continued use. The Department of Expenditure’s 10 November 2026 instructions set a ₹20 lakh Net Dealer Price ceiling for EVs and ₹10 lakh for petrol, diesel and hybrid vehicles. A ministry can still request an exception where an EV is impractical.

New purchase ceilings for central staff cars

These are procurement ceilings for central staff cars. For a price comparison, the relevant figure is Net Dealer Price, the measure named in the order.

How an exception works

If a ministry or department considers electric procurement or deployment impractical, it can refer a justified proposal to the Department of Expenditure. The proposal needs the approval of the administrative secretary and concurrence of the financial adviser. The department considers each request on its merits.

Hiring follows the earlier EV hiring instructions, which remain in effect. An ICE hire also requires a justified exception request through the same approvals. This distinction matters for departments that lease vehicles as well as those that buy them outright.

What it changes for central fleets

The change takes effect as ministries replace condemned vehicles. It gives them a higher purchase ceiling for EVs and makes the electric option the starting point for replacement planning. The order specifies no manufacturer award, purchase volume or timetable for replacing the fleet.

FAQs

Which organisations does the staff-car order cover?

It addresses ministries and departments of the Government of India. The memorandum describes rules for those central bodies.

Can a department still hire a petrol or diesel vehicle?

Yes, if the Department of Expenditure grants a case-by-case relaxation after the department submits a justified proposal with the required approvals.

For central fleet teams, the immediate decisions are which vehicles are due for replacement, whether an EV can serve their duty cycle, and whether an exception needs to be documented.