ELECTRIC VEHICLE RETROFITTING: A GUIDE TO POLICY-MAKING

September 2023

GGGI Technical Report No. 29

ELECTRIC VEHICLE

RETROFITTING:

A GUIDE TO

POLICY-MAKING

Part of GGGI’s technical report series

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7. G20 Background Paper: Green Growth to Achieve the Paris Agreement, Frank Rijsberman, Orestes Anastasia, Pranab Baruah, Stelios

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Grafakos, Dereje Senshaw, and Diana Alejandra Quezada Avila, 2020.

13. Achieving Green Growth and Climate Action Post-COVID-19, Frank Rijsberman, Lilibeth Acosta, Nishant Bhardwaj, Chris Dickinson,

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14. Green Growth in Action: Attaining Green Cities, Donovan Storey and Aarsi Sagar et al., 2020.

15. The Promise of Green Growth: A Pathway to Prosperity while Achieving National and Global Ambitions, Orestes Anastasia and Stelios

Grafakos et al., 2020.

16. Green Growth Index 2020 – Measuring performance in achieving SDG targets, Lilibeth Acosta et al., 2020.

17. Green Growth Simulation Tool Phase 1 – Concept, Methods and Applications, Lilibeth Acosta et al., 2020.

18. Post-COVID-19 Green Recovery Report Summary: Recommendations to Green Mexico’s Recovery at the Subnational Level, Jose L.

Amaya, Pablo Martinez, Diana A. Quezada, and Laura Valdez, GGGI Mexico, 2021.

19. Green Recovery and Climate Action: Assessing Green Jobs from Renewable Energy and Forestry Investments for Developing and

Emerging Economies, Stelios Grafakos, Hanna Kim, Svenja Krispien, Diana Quezada, and Frank Rijsberman, 2021.

20. Closing the Climate Financing Gap: Stocktaking of GGGI Green Investment Projects 2015–20, Lasse Ringius and DaYeon Choi, 2021.

21. Accelerating Implementation of GGGI Members’ Nationally Determined Contributions: A Review of GGGI Members’ NDCs for

E-Mobility, Chang Sun Jang, Eileen Hur, Ji Hi Yun, and Kyung Nam Shin, 2021.

22. Green Growth Index 2021: Measuring Performance in Achieving SDG Targets, Lilibeth Acosta and Simon Zabrocki et. al., December

2021.

23. Green and Blue Growth Synergy – Concept for the OECS Green-Blue Growth Index, Lilibeth Acosta and Kristin Deason et al., December

2021.

24. Unlocking the Potential for Large-scale Waste Treatment Plants with a Focus on Energy Recovery and Modular Project Design: Lessons

learned from Cambodia, Lao PDR, and Vietnam, Shomi Kim and Jerome Fakhry et al., 2022.

25. Developing carbon markets based on Article 6 of the Paris Agreement: Challenges and Opportunities, Fenella Aouane, Marshall Brown,

Frank Rijsberman, 2022.

26. A Review of GGGI Members’ E-Mobility Policy Measures, Chang Sun Jang, Eileen Hur, and Isabela Costa Bandeira Coelho, 2022.

27. Green Growth Index 2022: Measuring Performance in Achieving SDG Targets, Lilibeth Acosta, Innocent Nzimenyera, et al., December

2022.

28. Closer to 1.5°C: Driving Ambitions to Deliver on the Paris Agreement: Lessons and Recommendations from GGGI’s Provision of Support

to Member and Partner Countries in 2020-2021 for NDC Enhancement, Ingvild Solvang, Siddhartha Nauduri, et al., May 2023

29. Electric Vehicle Retrotting: A Guide to Policy-Making, Chang Sun Jang, Isabela Costa Bandeira Coelho, and Chaewon An, September

2023

Global Green Growth Institute

Jeongdong Building 19F

21-15 Jeongdong-gil

Jung-gu, Seoul 04518

Republic of Korea

The Global Green Growth Institute does not make any warranty, either express or implied, or assume any legal liability or

responsibility for the accuracy, completeness, or any third party’s use or the results of such use of any information, apparatus,

product, or process disclosed of the information contained herein or represents that its use would not infringe privately

owned rights. The views and opinions of the authors expressed herein do not necessarily state or reect those of the Global

Green Growth Institute.

ACKNOWLEDGEMENTS

Authors

Chang Sun Jang (Lead in Transport and Sustainable Mobility, GGGI), Isabela Costa Bandeira Coelho (Consultant, GGGI), and Chaewon An

(Intern, GGGI)

Reviewers

Dr. Frank Rijsberman (Director General, GGGI), Mr. Gulshan Vashistha (Regional Technical Lead for Asia, GGGI), Dr. Chaewoon Oh

(Principal Researcher, National Institute of Green Technology), Dr. Taewook Huh (Associate Professor, Gyeongsang National University

ACRONYMS & ABBREVIATIONS

AP Air Pollutants

CAPEX Capital expenditure

CO2 Carbon dioxide

EU European Union

EV Electric vehicle

GGGI Global Green Growth Institute

GHG Greenhouse gas

GM General Motors

HDV Heavy-duty vehicle

ICE Internal combustion engine

IEA International Energy Agency

LDV Light-duty vehicle

OEM Original equipment manufacturer

OPEX Operational expenditure

R&D Research and development

RTOs Region transport ofces

TCO Total cost of ownership

UK United Kingdom

US United States

ZEV Zero-emission vehicle

ZEZ Zero Emission Zones

CONTENTS

Executive Summary

INTRODUCTION

1.1. CONTEXT

1.2. OBJECTIVE AND SCOPE

EV RETROFITTING MARKET AND

TECHNOLOGIES

2.1. EV RETROFITTING MARKET

2.2 MAJOR CONVERSION KITS FOR

RETROFITTING

2.3. RETROFITTING PROCESS

POLICY MEASURES

3.1. GLOBAL BARRIERS FOR EV

RETROFITTING EXPANSION

3.2 ENABLING MEASURES

3.3. EV RETROFITTING POLICIES AMONGST

GGGI MEMBERS

FINANCIAL ASSESSMENT

4.1. ECONOMIC BENEFITS FOR LDVs

4.2 ECONOMIC BENEFITS FOR 3Ws

4.3 ECONOMIC BENEFITS FOR 2Ws

REFERENCES

CASE STUDIES

5.1. FRANCE

5.2. UNITED STATES

5.3. INDIA

5.4. JAPAN

5.5. KENYA

5.6. SRI LANKA

CONCLUSION AND

RECOMMENDATIONS

6.1. CONCLUSION

6.2 RECOMMENDATIONS

Electric Vehicle Retrotting: A Guide to Policy-Making

Electric vehicles (EVs) have gained popularity as cleaner

and more efcient solutions for achieving decarbonization

objectives. More and more national governments have

adopted electrication targets in their mobility strategies,

while major original equipment manufacturers (OEMs) are

prioritizing investments in the sector for its effectiveness,

potential, and growing popularity of EVs among customers.

Despite the optimistic outlook, there are considerable

challenges to the widespread adoption of EVs, such as high

market costs, limited efciency, scrappage production, and

public acceptance.

Within the context of a global macro

electrication agenda, EV conversion – or EV retrotting

– is a viable alternative to address the limitations of new

EV technology, offering an innovative and adaptable green

transportation solution.

With the potential to offer a more cost-effective, fast,

and adaptable alternative to the purchase of new EVs,

EV retrotting is slowly being adopted by key countries

as a complementary process to the electrication of

transportation systems. Therefore, this report intends

to explore EV retrotting as a viable option for GGGI

Members, focusing on market, technology, economic and

policy insights that can render future development and

investment opportunities.

The basic concept of vehicular retrotting is the removal

of the hardware systems of the combustion engine,

including the motor, motor controller, battery, gearbox

with differential, and wiring harness part. The process is

then followed by the substitution with the basic parts of

an EV: a steering system, suspension subsystem, braking

system, traction motor (AC or DC), battery with battery

management system, gearbox with differential, motor

controller unit, and vehicle switching and controlling part.

Undoubtedly, EV retrotting has the potential to play an

important middle-ground role in the complete electrication

of transportation systems. Global economic and policy

1 IEA, Global EV Outlook, last modied 2021.

2 Robbie Watts, Aritra Ghosh, and Justin Hinshelwood, “Exploring the

potential for electric retrot regulations and an accreditation scheme in the

UK,” Electronics 10, no. 24 (2021).

3 Arun C. Giriyapur and D. M. Karthik, “Retrotting of an engine

powered vehicle into an electric vehicle,” International Conference on Smart

System and Inventive Technology (ICSSIT) (2019), https://doi.org/10.1109/

ICSSIT46314.2019.8987868.

trends for green technology, transport electrication, and

climate-friendly solutions provide an optimistic outlook

of growth and development for the market over the next

decade.

However, persisting challenges still need to

be addressed for the industry to advance. Regulatory,

technological, and enabling barriers must be addressed for

the ICE-to-EV conversion industry to develop beyond its

current infancy stage into an adaptable and reliable low-

carbon strategy for governments worldwide.

The resolution of challenges is essential to facilitate wider

adoption of technology. Public policies, incentives, and

regulatory systems play a major role in the expansion of

the EV retrot market.

This report explores key enabling

measures for the EV retrotting industry and market’s

further development. It analyzes past experiences with

similar technologies as well as countries’ best practices to

ofcially support EV conversion, focusing on safety and

technical regulations, market incentives, R&D programs,

and other measures for normalization and expansion of the

practice.

Despite these barriers, several countries present a scenario

with exemplary policy practices that acknowledge EV

retrotting as a feasible and worthwhile investment. The

countries analyzed in this report show comprehensive

examples of public policies that are specic to EV

retrotting, allowing the industry to develop and continue to

grow. Among 46 GGGI members considered, ve countries

– Australia, Indonesia, Nepal, Sri Lanka, and the UK – were

identied with having EV conversion legislation. When

applying the division of Technical Regulation, Incentive

Measures, and Environment Enabling Measures, only

Indonesia possesses the three sets of regulations.

This report conducts comparative economic analysis of

two-wheelers (2Ws), three-wheelers (3Ws), and four-

wheelers (4Ws) retrotting with the case of Indonesia,

Sri Lanka, and Kenya respectively. This analysis is to fairly

reect the economic benets of retrotted electric vehicles.

Capital expenditure (CAPEX) includes vehicle investment

costs and partial replacement investment costs such as

batteries. Operational expenditure (OPEX) mainly includes

maintenance and energy costs including diesel for ICE

vehicles and electricity for electric ones.

In this analysis, total cost of ownership (TCO) and unit travel

cost (USD/km) indicators are used to determine the eco-

nomic benets. The following table shows the expected eco-

nomic benets of three types of retrotted electric vehicles

including 2Ws, 3Ws, and 4Ws.

4 Precedence Research, “Automotive retrot electric vehicle.”

5 Kukar, “Retrotting for electric vehicles.”

Executive

Summary

Electric Vehicle Retrotting: A Guide to Policy-Making

Table 1. The result of comparative Economic Analysis

New ICE New EV Retroed EV

4Ws

TCO

(USD)

100,736 82,913 65,217

$/km 0.427 0.302 0.249

3Ws

TCO

(USD)

27,487 16,162 15,250

$/km 0.066 0.034 0.033

2Ws

TCO

(USD)

3,134 1,700 2,436

$/km 0.026 0.013 0.018

In addition, this report conducts environmental impact

assessment of the retrotted electric vehicles. The

following table shows the expected environmental impact

of the retrotted electric eet per annum. In terms of local

pollutants, new E4W and retrotted E4W options reduce

2.5

and NO

emissions by 100%.

Table 2. Environmental Impacts of Retrotted EV

New ICE New EV Retroed EV

4Ws

(kgCO2e)

3,777.91 1,844.23 1,844.23

2.5

(g)

1,991.206 0.000 0.000

(kg)

348.068 0.000 0.000

3Ws

(kgCO2e)

7,051.80 2,750.20 2,750.20

2.5

(g)

785.744 0.000 0.000

(kg)

116.073 0.000 0.000

2Ws

(kgCO2e)

387.89 292.52 292.52

2.5

(g)

68.326 0.000 0.000

(kg)

10.093 0.000 0.000

The EV retrotting market can be directly beneted by

the promotion of decarbonization strategies and industry

innovations and can be further expanded by the adoption

of effective policies for the regulation and promotion of

the practice. Given its potential as a more cost-effective,

fast, and adaptable alternative to purchasing new EVs,

retrotting is slowly being adopted by countries as

a complementary process to the electrication of

transportation systems. Given this circumstance, this

report proposes the following recommendations:

RECOMMENDATION 1: Establishment of EV conversion–

specic technical legislation

With the increasing availability of EV retrotting kits to

the public, countries must prioritize specic legislation

to regulate and oversee the EV retrotting process. The

adoption of an updated and robust regulation scheme helps

guarantee the reliability of the process to the customer,

constituting an important rst step for the expansion of the

market.

RECOMMENDATION 2: Inclusion of EV retrots in

existing EV incentives

As countries continue to invest in different decarbonization

strategies for their transportation systems, electrication

is a popular alternative for many. While it may be argued

that EV retrots can be automatically classied as EVs and,

consequently, be given the same incentives granted to new

EVs, an explicit inclusion of converted vehicles is essential

for a truthful adoption of retrotting as an electrication

strategy.

RECOMMENDATION 3: Investment in R&D, capacity-

building, and awareness campaigns

It is recommended to invest in manufacturers, start-ups,

and companies through national R&D programs to continue

to develop new EV conversion kits as well as for capacity

building for the technicians who perform the conversion.

Additionally, awareness campaigns are necessary to

familiarize customers with the technology.

Electric Vehicle Retrotting: A Guide to Policy-Making

Growing concerns about rising global temperatures and

the effects of climate change have led countries to develop

strategies for the reduction of GHG emissions in different

sectors.

The transportation sector, historically primarily

reliant on fossil fuels

and responsible for considerably

over a quarter of CO

emissions globally,

has been heavily

affected by these trends. Major industry players have been

prompted to embrace carbon-light solutions and formulate

long-term strategies for decarbonization.

Electric vehicles (EVs) have gained popularity as cleaner and

more efcient solutions to help achieve decarbonization

objectives. Numerous national governments have adopted

electrication targets for their mobility strategies, while

major original equipment manufacturers (OEMs) have

prioritized investments in the sector for its effectiveness,

6 UNFCCC, Key aspects of the Paris Agreement, accessed October 2,

2022, https://unfccc.int/most-requested/key-aspects-of-the-paris-ag

reement?gclid=CjwKCAjwrdmhBhBBEiwA4Hx5g4N4YHKwi1RaH_

XUmZtdG7QdhuL8PgKRgc4Zzq0wtdtMJifxNxxjQxoCsIQQAvD_BwE.

7 IEA, Transport, last modied 2023.

8 IEA, Transport, last modied 2022.

1. INTRODUCTION

1.1. CONTEXT

potential, and growing popularity of EVs among customers.

Despite the optimistic outlook, there are considerable

challenges to the widespread adoption of EVs, such as high

market costs, limited efciency, scrappage production, and

public acceptance.

In the broader context of a global macro

electrication agenda, EV conversion or retrotting is a

viable alternative to the limitations of new EV technology,

offering a fresh perspective to overcome the existing

limitations and challenges.

New EVs are still considered luxury vehicles in many

markets worldwide. Given the stage of the technology and

of manufacturers, purchasing a new EV model is often not a

nancially viable option for many customers

. Furthermore,

many customers face the high purchase costs for new EV

models while still encountering the challenges of owning

internal combustion engines (ICEs), such as restrictions

on CO

emissions and rising oil prices.

In this context, EV

9 IEA, Global EV Outlook, last modied 2021.

10 Robbie Watts, Aritra Ghosh, and Justin Hinshelwood, “Exploring the

potential for electric retrot regulations and an accreditation scheme in the

UK,” Electronics 10, no. 24 (2021).

11 Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

12 Gupta Kukar, “Retrotting for electric vehicles: Status, potentials,

and challenges,” The City Fix Learn, last modied July 29, 2019, https://

thecityxlearn.org/webinar/retrotting-electric-vehicles-status-potential-

and-challenges.

Electric Vehicle Retrotting: A Guide to Policy-Making

retrotting could be a possible alternative for democratizing

access to electrication. It serves not only as a cost-efcient

option for customers but also offers opportunities for

engagement with EV parts industries and the expansion of

EV infrastructure’s outreach.

While OEMs are adapting their productive systems to

incorporate the different needs of EV consumers, the

current market is dominated by popular vehicles from high-

income countries and is unable to meet diverse demands

of distinct geographical regions and niche clientele.

The adoption of more widespread EV conversion would

allow (i) for owners of vehicles with a high inherent

value to transition their ICEs into a technology t for

decarbonization, (ii) for owners of niche vehicles to

participate in electrication despite the lack of alternatives

for new EV models, and (iii) for governments and

manufacturers to spread awareness and information about

EVs and accelerate long-term electrication.

EV retrotting has the potential to be an environmentally

friendly alternative to the purchase of new EV models.

EV conversion not only reduces scrappage by reducing

the number of potentially discarded vehicles in the

transformation process, but also shows promise in

diminishing GHG emissions. Recent studies show that

retrotted EVs exhibit reduced life cycle GHG emissions

compared to both ICE vehicles and even new EV models.

While the technology is still new and its market is still

advancing, EV retrotting can tackle the challenges that

new EV models face and has the potential to successfully

integrate strategies for decarbonization. Consequently, the

electric retrotting of vehicles can play an important role in

facilitating the electrication of transport and achieving the

long-term goal of sustainable decarbonization.

Global economic and policy trends for green technology,

transport electrication, and climate-friendly solutions

provide an optimistic outlook of growth and development

for the EV retrotting market over the next decade.

However, persisting challenges still need to be addressed for

the industry to advance. A lack of visibility and knowledge

of retrotting solutions among possible customers and

13 Fabian Hoeft, “Internal combustion engine to electric vehicle

retrotting: Potential customer’s needs, public perception and business

model implications,” Transportation Research Interdisciplinary Perspectives 9

(2021), https://doi.org/10.1016/j.trip.2021.100330.

14 Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

15 Hoeft, “Internal combustion engine to electric vehicle retrotting”;

Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

16 Eckard Helmers, Johannes Dietz, and Susanne Hartard, “Electric

car life cycle assessment based on real-world mileage and the electric

conversion scenario,” The International Journal of Life Cycle Assessment

(2017): 22, https://doi.org/10.1007/s11367-015-0934-3.

17 Precedence Research, “Automotive retrot electric vehicle.”

policymakers alike, for instance, hinders the inclusion of such

solutions in transport electrication strategies.

Without

governmental support, the industry’s capacity for developing

better and cheaper technology is inhibited, restricting the

existing EV conversion kits to a narrow number of vehicle

models with limitations in terms of range and longevity.

EV retrotting has the potential to play an important middle-

ground role in the complete electrication of transportation

systems. As a solution to challenges such as the total cost

of EV adoption and high scrappage levels of old ICE models,

the expansion of EV retrotting should be considered

by governments within their long-term electrication

strategies. Despite the EV conversion industry being in its

initial stages, it can be a strong alternative for countries

that cannot afford bold electrication initiatives due to high

upfront costs. Retrotting can be used to facilitate policy

transitions for transport electrication, given its adaptability

to regulations and incentives for EV adoption and can

thus promote further visibility of electric transportation

alternatives.

Additionally, it may provide environmental

benets through promoting reutilization of older vehicle

parts and reducing the scrappage associated with the

expansion of new EVs.

1.2. OBJECTIVE AND SCOPE

With the potential of being a more cost-effective, fast,

and adaptable alternative to the purchase of new EVs,

EV retrotting is slowly being adopted by key countries

as a complementary process to the electrication of

transportation systems. Therefore, this report intends

to explore EV retrotting as a viable option for GGGI

Members, focusing on market, technology, economic and

policy insights that can render future development and

investment opportunities.

The report will be used to support the GGGI team and

Members to facilitate the adoption of EV retrotting. The

report includes six chapters:

• Chapter 1 presents a general contextualization of

EV retrotting and the introduction of the report.

18 Hoeft, “Internal combustion engine to electric vehicle retrotting.”

19 Neil Winton, “Electric cars are too expensive for many, but retrotting

could be the answer,” Forbes, last modied January 20, 2022, https://www.

forbes.com/sites/neilwinton/2022/01/20/electric-cars-are-too-expensive-

for-many-but-retrotting-could-be-the-answer/?sh=319bbc397583.

20 Hoeft, “Internal combustion engine to electric vehicle retrotting”;

Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

21 Hoeft, “Internal combustion engine to electric vehicle retrotting”;

Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

Electric Vehicle Retrotting: A Guide to Policy-Making

• Chapter 2 introduces a brief market analysis of

EV retrotting and presents an explanation of the

composition and procedure of EV retrotting of

different modes of vehicles.

• Chapter 3 presents policy incentives and strategies

to promote safe and inclusive EV retrotting

amongst public and private stakeholders.

• Chapter 4 showcases a nancial assessment of

ICE vehicles, new electric vehicles, and retrotted

electric vehicles of three different vehicle types

in three different case countries to explore the

possible economic and environmental benets.

• Chapter 5 explores case studies that highlight

countries’ policy experiences with EV conversion

and the lessons learned from previous chapters.

• Chapter 6 summarizes the information provided

throughout the report.

Electric Vehicle Retrotting: A Guide to Policy-Making

2. EV

RETROFITTING

MARKET AND

TECHNOLOGIES

2.1. EV RETROFITTING MARKET

The EV retrotting market has the potential for a vast

uptake among consumers, not only for its cost-effectiveness

but also for its technology. EV retrotting kits are simple

in composition, and the conversion process is relatively

straightforward for specialized technicians. While market

analyses indicate that the EV retrotting market is in its

initial stages, the simplicity and accessible technology are

a clear advantage for its expansion. However, caution is

advised in inspections and supervision to guarantee a safe

and optimal adoption of EV retrotting.

As will be explored

22 Nirmal Kumar, Navaneeth M, and Allan Sabu Joseph, “Retrotting of

conventional two-wheelers to electric two-wheelers,” 13th IEEE PES Asia

Pacic Power & Energy Engineering Conference (PPEEC) (2021), https://doi.

org/10.1109/APPEEC50844.2021.9687799.

in following chapters, proper EV retrotting regulations can

allow for market growth and for EV technology to be further

naturalized in society.

While the global EV retrotting market currently

presents a limited number of regularized retrotting kits,

popularization of the practice creates an avenue for the

exploration of the technology in more specialized vehicles

and in conjunction with other electrication technologies.

Current auto manufacturers already produce most of the

parts composing retrotting kits, making entry into the EV

conversion business relatively cost-effective and resource-

efcient. Major OEMs have an opportunity to expand

into the electrication market without compromising a

signicant portion of their production capacity.

The growing consumer demand for vehicle electrication

and stricter government regulations on vehicle emissions

present key opportunities for the expansion of the electric

conversion market, with demand predicted to grow for

passenger vehicles and two-wheelers in the next decade.

The global retrot vehicle market was valued at an estimate

USD 65.94 billion in 2023 and is projected to reach USD

125.37 billion by 2032

. The market presents signs of

continuous growth, being dominated by the commercial

vehicle segment (48%) and by market shares from Asia-

23 Hoeft, “Internal combustion engine to electric vehicle retrotting.”

24 Precedence Research, “Automotive retrot electric vehicle powertrain

market size, share, report by 2032,” last modied June 2023, https://www.

precedenceresearch.com/press-release/automotive-retrot-electric-

vehicle-powertrain-market

Electric Vehicle Retrotting: A Guide to Policy-Making

Pacic (62.5%), Europe (17.3%), North America (10.7%),

Latin America (4%), and the Middle East and Africa (2.1%).

Figure 1: Automotive retrot electric vehicle powertrain mar-

ket size, 2021 to 2030 (USD billion), Precedence Research, 2021

6 | Page

2. EV RETROFITTING

MARKET AND

TECHNOLOGIES

2.1. EV RETROFITTING MARKET

The EV retrofitting market has the potential for a vast

uptake among consumers, not only for its cost-

effectiveness but also for its technology. EV retrofitting

kits are simple in composition, and the conversion

process is relatively straightforward for specialized

technicians. While market analyses indicate that the EV

retrofitting market is in its initial stages, the simplicity

and accessible technology are a clear advantage for its

expansion. However, caution is advised in inspections

and supervision to guarantee a safe and optimal adoption

of EV retrofitting.

As will be explored in following

chapters, proper EV retrofitting regulations can allow for

market growth and for EV technology to be further

naturalized in society.

While the global EV retrofitting market currently

presents a limited number of regularized retrofitting kits,

popularization of the practice creates an avenue for the

exploration of the technology in more specialized

vehicles and in conjunction with other electrification

technologies.

Current auto manufacturers already

produce most of the parts composing retrofitting kits,

making entry into the EV conversion business relatively

cost-effective and resource-efficient. Major OEMs have

an opportunity to expand into the electrification market

without compromising a significant portion of their

production capacity.

The growing consumer demand for vehicle

electrification and stricter government regulations on

vehicle emissions present key opportunities for the

Nirmal Kumar, Navaneeth M, and Allan Sabu Joseph, “Retrofitting of

conventional two-wheelers to electric two-wheelers,” 13th IEEE PES

Asia Pacific Power & Energy Engineering Conference (PPEEC) (2021),

https://doi.org/10.1109/APPEEC50844.2021.9687799.

Hoeft, “Internal combustion engine to electric vehicle retrofitting.”

Precedence Research, “Automotive retrofit electric vehicle

powertrain market size, share, report by 2032,” last modified June

2023, https://www.precedenceresearch.com/press-

release/automotive-retrofit-electric-vehicle-powertrain-market

Precedence Research, “Automotive retrofit electric vehicle

powertrain market,” last modified September 2022,

expansion of the electric conversion market, with

demand predicted to grow for passenger vehicles and

two-wheelers in the next decade. The global retrofit

vehicle market was valued at an estimate USD 65.94

billion in 2023 and is projected to reach USD 125.37

billion by 2032

. The market presents signs of

continuous growth, being dominated by the commercial

vehicle segment (48%) and by market shares from Asia-

Pacific (62.5%), Europe (17.3%), North America (10.7%),

Latin America (4%), and the Middle East and Africa

(2.1%).

Figure 1: Automotive retrofit electric vehicle powertrain market size,

2021 to 2030 (USD billion), Precedence Research, 2021

EV retrofitting can be an asset for the decarbonization of

transportation systems—for users of professional-specific

vehicles (e.g., ambulances or commercial mobiles) who

wish to transition to EVs but cannot find available

electric models of their vehicles.

Similarly, the

technology appeals to collectors of classic models or

other niche markets, facing restrictions on ICE vehicle

use within zero-emission zones (ZEZ).

The conversion

of specific models can guarantee optimal customer

https://www.precedenceresearch.com/automotive-retrofit-electric-

vehicle-powertrain-market, Precedence Research, “Automotive retrofit

electric vehicle powertrain market size, share, report by 2032,” last

modified June 2023, https://www.precedenceresearch.com/press-

release/automotive-retrofit-electric-vehicle-powertrain-market

Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrofit regulations.”

Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrofit regulations.”

100

120

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

EV retrotting can be an asset for the decarbonization of

transportation systems—for users of professional-specic

vehicles (e.g., ambulances or commercial mobiles) who

wish to transition to EVs but cannot nd available electric

models of their vehicles.

Similarly, the technology appeals

to collectors of classic models or other niche markets, facing

restrictions on ICE vehicle use within zero-emission zones

(ZEZ).

The conversion of specic models can guarantee

optimal customer approval and present better performance

compared to new EV models of the same category, with

certain retrot models having over 100 kilometers more

autonomy than their new EV counterparts.

The global EV conversion market denes different

retrotting demands according to the region. Asia-Pacic

presents the largest share of the global EV powertrain

conversion market, led by countries with strong investments

in clean transportation research and development

25 Precedence Research, “Automotive retrot electric vehicle powertrain

market,” last modied September 2022, https://www.precedenceresearch.

com/automotive-retrot-electric-vehicle-powertrain-market, Precedence

Research, “Automotive retrot electric vehicle powertrain market

size, share, report by 2032,” last modied June 2023, https://www.

precedenceresearch.com/press-release/automotive-retrot-electric-

vehicle-powertrain-market

26 Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

27 Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

28 Luthereau, Alexandra, “Le retrot électrique: L’avenir de la voiture

propre?” Numerama, last modied June 28, 2020, https://www.numerama.

com/tech/628645-le-retrot-electrique-lavenir-de-la-voiture-propre.html.

(R&D), such as China, India, Japan, and South Korea.

Increasing demand for EV retrotting in the region is led

by governments’ determination to spur electromobility

adoption, elevated prices of new EV models, and

investments in R&D both in the public and private sectors.

Retrotting is presented as a cost-effective alternative,

utilizing technology and expertise developed in conjunction

with EV R&D. The exploration of EV retrotting as a related

market creates opportunities for the development of

universal conversion kits of different small car models as

well as other popular modes of transportation, such as two-

and three-wheelers.

Increased demand from European and North American

economies is also affecting the development of new

technologies in the EV retrotting market. With new

EV models being more nancially accessible in these

countries—through high investments in R&D and nancial

and scal incentives for the purchase and ownership of

EVs—retrotting targets the conversion of classic or labor-

specic vehicles rather than most of the transportation eet

in these regions. In these cases, the development of new

business models and vehicle model–specic conversion kits

can contribute to the retrotting market expansion.

Figure 2: Automotive retrot electric vehicle powertrain mar-

ket share, by vehicle type, 2021 (%), Precedence Research, 2021

7 | Page

approval and present better performance compared to

new EV models of the same category, with certain

retrofit models having over 100 kilometers more

autonomy than their new EV counterparts.

The global EV conversion market defines different

retrofitting demands according to the region. Asia-Pacific

presents the largest share of the global EV powertrain

conversion market, led by countries with strong

investments in clean transportation research and

development (R&D), such as China, India, Japan, and

South Korea.

Increasing demand for EV retrofitting in

the region is led by governments’ determination to spur

electromobility adoption, elevated prices of new EV

models, and investments in R&D both in the public and

private sectors. Retrofitting is presented as a cost-

effective alternative, utilizing technology and expertise

developed in conjunction with EV R&D. The exploration

of EV retrofitting as a related market creates

opportunities for the development of universal

conversion kits of different small car models as well as

other popular modes of transportation, such as two- and

three-wheelers.

Increased demand from European and North American

economies is also affecting the development of new

technologies in the EV retrofitting market. With new EV

models being more financially accessible in these

countries—through high investments in R&D and

financial and fiscal incentives for the purchase and

ownership of EVs—retrofitting targets the conversion of

classic or labor-specific vehicles rather than most of the

transportation fleet in these regions. In these cases, the

development of new business models and vehicle

model–specific conversion kits can contribute to the

retrofitting market expansion.

Luthereau, Alexandra, “Le retrofit électrique: L’avenir de la voiture

propre?” Numerama, last modified June 28, 2020,

https://www.numerama.com/tech/628645-le-retrofit-electrique-

lavenir-de-la-voiture-propre.html.

Transparency Market Research, “Automotive retrofit electric vehicle

powertrain market,” last modified June 2022,

https://www.transparencymarketresearch.com/automotive-retrofit-

electric-vehicle-powertrain-market.html.

Transparency Market Research, “Automotive retrofit electric vehicle.”

Precedence Research, “Automotive retrofit electric vehicle.”

Figure 2: Automotive retrofit electric vehicle powertrain market share,

by vehicle type, 2021 (%), Precedence Research, 2021

By vehicle type, the market is segmented into

commercial vehicles, two-wheelers, and passenger

vehicles. In 2021, the commercial vehicle segment held

the largest electric conversion market share. A diverse

set of countries, such as China and India, have facilitated

the conversion of electric buses and heavy-duty trucks to

decrease pollution along congested delivery routes.

The passenger vehicle segment is also anticipated to

have the dominating market share by 2030. Market

drivers—such as increases in fuel prices, the development

of new motor and battery technologies, and the adoption

of stricter carbon emission regulations—will fuel major

investments in retrofitting passenger vehicles.

Major OEMs (e.g., GM

Ford,

and Toyota

) have

announced their expansion toward the EV retrofitting

market, disclosing the release of official conversion kits

for their older models.

Further integration of

retrofitting technology within the global automobile

manufacturing system couldboost EV infrastructure

Paul A. Eisenstein, “GM set to join fast-growing EV conversion

market,” The Detroit Bureau, last modified July 22, 2022,

https://www.thedetroitbureau.com/2022/07/gm-set-to-join-fast-

growing-ev-conversion-market/.

Chris Randall, “Ford announces electric conversion motor.” Electrive,

last modified August 27, 2021,

https://www.electrive.com/2021/08/27/ford-announces-electric-

conversion-motor/.

Thom Taylor, “Toyota says it plans to convert old cars into EVs,”

Motor Biscuit, last modified January 13, 2023,

https://www.motorbiscuit.com/toyota-says-plans-to-convert-old-cars-

into-evs/.

Eisenstein, “GM set to join fast-growing EV conversion market.”

TWO- WHEELERS PASSENGER

VEHICLE

COMMERCIAL

VEHICLE

By vehicle type, the market is segmented into commercial

vehicles, two-wheelers, and passenger vehicles. In 2021,

the commercial vehicle segment held the largest electric

conversion market share. A diverse set of countries, such as

29 Transparency Market Research, “Automotive retrot electric

vehicle powertrain market,” last modied June 2022, https://www.

transparencymarketresearch.com/automotive-retrot-electric-vehicle-

powertrain-market.html.

30 Transparency Market Research, “Automotive retrot electric vehicle.”

31 Transparency Market Research, “Automotive retrot electric vehicle.”

Electric Vehicle Retrotting: A Guide to Policy-Making

China and India, have facilitated the conversion of electric

buses and heavy-duty trucks to decrease pollution along

congested delivery routes.

The passenger vehicle segment

is also anticipated to have the dominating market share by

2030. Market drivers—such as increases in fuel prices, the

development of new motor and battery technologies, and

the adoption of stricter carbon emission regulations—will

fuel major investments in retrotting passenger vehicles.

Major OEMs (e.g., GM

Ford,

and Toyota

) have

announced their expansion toward the EV retrotting

market, disclosing the release of ofcial conversion kits

for their older models.

Further integration of retrotting

technology within the global automobile manufacturing

system couldboost EV infrastructure development by

making electrication cheaper and more accessible.

Consequently, EV retrotting can play an important role in

the automotive industry’s transition.

The electric powertrain market plays a major role in the

development of EV retrotting as a decarbonization

solution. Companies in this sector, such as Altigreen, Bharat

Mobi, Continental AG, Dephi Technologies, Hitachi Astemo,

Magna International, Mitsubishi, Robert Bosch, Transition

One, etc. play a key role in the growth of the global market

Despite the initial adoption of the strategy by some global

players, local companies currently play a strategic role in

the popularization of EV conversion kits in their areas. Local

companies and manufacturers are more adaptable to their

markets’ needs in the development of retrotting solutions,

working with spare parts to create conversion kits

A preliminary identication of ICE to EV retrotting market

was conducted on GGGI member countries. The result is as

seen in Table 3:

32 Precedence Research, “Automotive retrot electric vehicle.”

33 Paul A. Eisenstein, “GM set to join fast-growing EV conversion

market,” The Detroit Bureau, last modied July 22, 2022, https://www.

thedetroitbureau.com/2022/07/gm-set-to-join-fast-growing-ev-

conversion-market/.

34 Chris Randall, “Ford announces electric conversion motor.” Electrive,

last modied August 27, 2021, https://www.electrive.com/2021/08/27/

ford-announces-electric-conversion-motor/.

35 Thom Taylor, “Toyota says it plans to convert old cars into EVs,” Motor

Biscuit, last modied January 13, 2023, https://www.motorbiscuit.com/

toyota-says-plans-to-convert-old-cars-into-evs/.

36 Eisenstein, “GM set to join fast-growing EV conversion market.”

37 Hoeft, “Internal combustion engine to electric vehicle retrotting.”

38 Precedence Research, “Automotive retrot electric vehicle powertrain

market size, share, report by 2032,” last modied June 2023, https://www.

precedenceresearch.com/press-release/automotive-retrot-electric-

vehicle-powertrain-market

39 Hoeft, “Internal combustion engine to electric vehicle retrotting”;

Precedence Research, “Automotive retrot electric vehicle.”

Table 3: Preliminary mapping of ICE to EV retrotting market in

GGGI member countries

Region Countries with Retrotting Market

Asia Indonesia, Republic of Korea, Nepal,

Pakistan, Sri Lanka, Thailand

Africa Kenya, Rwanda

Europe Norway, UK

Latin

America and

Caribbean

Colombia, Ecuador, Mexico, OECS,

Paraguay, Peru

Middle East UAE

Pacic Australia, Philippines

Total: 19

Out of the 46 ofcial members of GGGI, 19 member

countries and organizations have been identied with EV

retrotting markets at some level. EV retrotting markets

have been identied in all regions in which GGGI is present.

A majority of these members are in the Asia region (6 out

of 19), reecting the organization of the current global

retrotting market. A similar quantity of members, however,

was identied in the Latin American and Caribbean regions

(6 out of 19). Fewer representations have been found in

Africa (2 out of 19), Europe (2 out of 19), the Pacic (2 out of

19), and the Middle East (1 out of 19).

Limitations on the preliminary identication of EV

retrotting markets amongst GGGI members must be

addressed. The mapping was conducted through desk-based

research and review from the GGGI HQ and regional ofces.

This exercise was conducted to grant a brief understanding

of the retrotting market amongst GGGI members, to

identify future opportunities and challenges for future

expansion of the service in the regions, and to guide analyses

of policy measures for market expansion. While the EV

retrotting market is still at an infancy level in a global scale,

further investigation is necessary to fully understand each

case country.

2.2. MAJOR CONVERSION KITS FOR

RETROFITTING

The basic concept of vehicular retrotting is the removal

of the hardware systems of the combustion engine,

including the motor, motor controller, battery, gearbox

with differential, and wiring harness part. The process is

then followed by the substitution with the basic parts of

an EV: a steering system, suspension subsystem, braking

Electric Vehicle Retrotting: A Guide to Policy-Making

system, traction motor (AC or DC), battery with battery

management system, gearbox with differential, motor

controller unit, and vehicle’s switching and controlling

apparatus.

In general, EV conversion kits are comprised of the basic

following parts:

• Motor

• Controller

• Shunt

• Transmission adapter kit

• Charger

• Chill plate

• DC-DC converter

• Throttle controller

• Controller mount

EV conversions must be nancially accessible to most car

owners for their adoption to be effectively popularized.

general, retrotting is made available for vehicles that are

ve years or older. When performing the electric conversion,

technicians and engineers must have a good understanding

of the vehicle’s daily operation cycle to size the battery

capacity appropriately without impeding the existing

passenger or load capacity.

The simplicity and relatively low prices of the component

parts for an EV retrotting process generate an opportunity

for further development of the electric powertrain market.

With predicted expansions and further interest in transport

electrication, powertrain developers should continue to

invest in versatile kits and products for conversion. The

development of adaptable and accessible kits will allow for

more exibility in vehicle conversions.

40 Arun C. Giriyapur and D. M. Karthik, “Retrotting of an engine

powered vehicle into an electric vehicle,” International Conference on Smart

System and Inventive Technology (ICSSIT) (2019), https://doi.org/10.1109/

ICSSIT46314.2019.8987868.

41 Sandesh Kandagal, “EV retrot technology? Conversion kit, cost &

companies,” e-Vehicle Info, last modied April 1, 2022, https://e-vehicleinfo.

com/ev-retrot-technology-conversion-kit-cost-companies/.

42 Robin Fearon, “Retrotting older cars with electric motors could

transform transport,” Discovery, last modied November 1, 2021, https://

www.discovery.com/motor/retrotting-older-cars-with-electric-motors-

could-transform-tra.

43 Transparency Market Research, “Automotive retrot electric vehicle.”

2.2.1. Two-wheelers

‘ components, with companies offering variations of the

following items:

• Electric motor

• Motor controller

• DC-DC converter

• Lithium-ion phosphate battery pack

One of the main concerns of two-wheeler retrotting is

the placement of the electric battery and the motor. This

positioning must be installed to maintain a safe weight

distribution for the end user. Since many of the original

components of ICE two-wheelers are not necessary in an

electric conversion, the stability of the nal product must be

prioritized

Battery capacity is one of the main challenges identied

for two-wheeler ICE to EV conversion. Ideal batteries for

this modal type must be compact in size, with high storage

capacity, and high energy generation to be optimal for

the range needs of consumers

. While challenges persist

on providing battery packs with optimal range capacity,

battery-swapping business models could potentially address

consumers’ range needs

Figure 3: Arrangement of propulsion system in converted

two-wheeler model, Zainor et al., 2019, p.73

44 Kumar, Navaneeth, Joseph, “Retrotting of conventional two-

wheelers to electric two-wheelers”

45 Kumar, Navaneeth, Joseph, “Retrotting of conventional two-

wheelers to electric two-wheelers”

46 Zainol, Toha, Kamisan, Bukhari, “Design and development of a retrot

electric motorbike”

47 Agarwal, Babbar, “Consumer’s attitude towards retrotting of existing

internal combustion engine scooters with electric conversion in India”

9 | Page

• Controller mount

EV conversions must be financially accessible to most car

owners for their adoption to be effectively popularized.

In general, retrofitting is made available for vehicles that

are five years or older. When performing the electric

conversion, technicians and engineers must have a good

understanding of the vehicle’s daily operation cycle to

size the battery capacity appropriately without impeding

the existing passenger or load capacity.

The simplicity and relatively low prices of the component

parts for an EV retrofitting process generate an

opportunity for further development of the electric

powertrain market. With predicted expansions and

further interest in transport electrification, powertrain

developers should continue to invest in versatile kits and

products for conversion. The development of adaptable

and accessible kits will allow for more flexibility in vehicle

conversions.

2.2.1. Two-wheelers

‘ㄴ components, with companies offering variations of

the following items:

● Electric motor

● Motor controller

● DC-DC converter

● Lithium-ion phosphate battery pack

One of the main concerns of two-wheeler retrofitting is

the placement of the electric battery and the motor. This

positioning must be installed to maintain a safe weight

distribution for the end user. Since many of the original

components of ICE two-wheelers are not necessary in an

electric conversion, the stability of the final product must

be prioritized

Battery capacity is one of the main challenges identified

for two-wheeler ICE to EV conversion. Ideal batteries for

this modal type must be compact in size, with high

Robin Fearon, “Retrofitting older cars with electric motors could

transform transport,” Discovery, last modified November 1, 2021,

https://www.discovery.com/motor/retrofitting-older-cars-with-

electric-motors-could-transform-tra.

Transparency Market Research, “Automotive retrofit electric vehicle.”

Kumar, Navaneeth, Joseph, “Retrofitting of conventional two-

wheelers to electric two-wheelers”

Kumar, Navaneeth, Joseph, “Retrofitting of conventional two-

wheelers to electric two-wheelers”

storage capacity, and high energy generation to be

optimal for the range needs of consumers

. While

challenges persist on providing battery packs with

optimal range capacity, battery-swapping business

models could potentially address consumers’ range

needs

Figure 3: Arrangement of propulsion system in converted two-wheeler

model, Zainor et al., 2019, p.73

2.2.2. Three-wheelers

Three-wheelers’ conversion kits closely resemble those

for two-wheelers, demanding less components than

retrofitting for conventional four-wheelers. The basic kit

contains the following components:

● Electric motor

● Motor controller

● DC-DC converter

● Lithium-ion phosphate battery pack

The removal of ICE parts during the conversion process

will allow retrofitted three-wheelers to be lighter when

compared to its ICE counterpart. Division of battery

packs under the driver and passenger seats allows for

stable weight distribution and safe vehicle operation

Additional changes in secondary parts (such as wind

screen glass, headlights, tail lamps, sunroof material,

chassis, etc.) are recommended to reduce the weight of

Zainol, Toha, Kamisan, Bukhari, “Design and development of a

retrofit electric motorbike”

Agarwal, Babbar, “Consumer’s attitude towards retrofitting of

existing internal combustion engine scooters with electric conversion in

India”

SL Mobility, “Conversion Kit,” last modified June 27, 2016,

https://www.slmobility.com/products/conversion-kit/conversion-

kit/conversion-kit.

Kokate, Uttekar, Karandikar, Holmukhe, “Retrofitting of auto

rickshaw to e-rickshaw – A feasibility study”

Electric Vehicle Retrotting: A Guide to Policy-Making

2.2.2. Three-wheelers

Three-wheelers’ conversion kits closely resemble those for

two-wheelers, demanding less components than retrotting

for conventional four-wheelers. The basic kit contains the

following components:

• Electric motor

• Motor controller

• DC-DC converter

• Lithium-ion phosphate battery pack

The removal of ICE parts during the conversion process

will allow retrotted three-wheelers to be lighter when

compared to its ICE counterpart. Division of battery packs

under the driver and passenger seats allows for stable

weight distribution and safe vehicle operation

. Additional

changes in secondary parts (such as wind screen glass,

headlights, tail lamps, sunroof material, chassis, etc.) are

recommended to reduce the weight of the three-wheeler

further and optimize the range capacity of the retrotted

version

Figure 4: Illustrative diagram of shift of center gravity of ICE

three-wheeler (above) and of retrotted three-wheeler (below),

Kokate et al, 2020, p.232

48 SL Mobility, “Conversion Kit,” last modied June 27, 2016, https://

www.slmobility.com/products/conversion-kit/conversion-kit/conversion-kit.

49 Kokate, Uttekar, Karandikar, Holmukhe, “Retrotting of auto rickshaw

to e-rickshaw – A feasibility study”

50 Kokate, Uttekar, Karandikar, Holmukhe, “Retrotting of auto rickshaw

to e-rickshaw – A feasibility study”

2.2.3. Passenger vehicles

Battery capacities currently vary from 72 to 420 kilowatt

hours. The electric range of current EVs can vary between

100 and 300 kilometers depending on weather and loads.

Figure 5: Basic components for LDV electric retrotting, Zemo,

2021

There might be variations in the components of retrotting

kits according to the necessities of different vehicles.

Electric retrotting of heavy-duty vehicles (HDVs),

especially of buses, depends heavily on the structure of

the chassis, with companies needing to adapt their specic

demands to the models and their internal engine structure.

2.3. RETROFITTING PROCESS

Similar to its technological aspects, the retrotting process

follows a general order for most vehicle types. Before

beginning the conversion, an initial inspection of the vehicle

must be performed to determine whether the chosen

vehicle can be retrotted. Since every vehicle has specic

measurements and balancing conditions that must be

met, conversion companies typically work with models for

which they possess the expertise. These vehicles are often

lightweight and spacious, which facilitates the installation of

electric batteries.

After the initial inspection, the vehicle’s thermal elements

are removed, which mainly consist of the internal

combustion engine, fuel tank, mufer, exhaust system,

starter, and radiator. ICE vehicles frequently have

unnecessary components necessary for electric operation,

and their full removal renders space for the installation of

the new components.

The integration of the retrotting technology comes quickly

after, consisting of the electric motor, the battery (usually

51 Daniel Hayes, The Clean Vehicle Retrot Technology Guide, Zemo

Partnership, 2021.

52 Equipmake, EVR-B5 Overview, last accessed January 13, 2023.

Electric Vehicle Retrotting: A Guide to Policy-Making

lithium-ion batteries, as they are the lighter models in the

market), lithium cells, and a power controller to regulate

the ow of energy. This step presents the most variation in

terms of vehicle models, as the size of the electric motors

and batteries will depend on the available size of each

vehicle, their expected performance, and their weight.

Two-wheelers require special attention due to the potential

weight increase (approximately 15-20%) resulting from

the installed electric technology. This alteration could

impact stability, and, consequently, overall performance.

E-bus conversions also present more rigorous procedures

during the integration of the retrotting technology, as

they generally involve the submission of details of changes,

ideally with supporting evidence that the vehicle meets

certain regulations.

Standardization of the popular bus

chassis is necessary to develop technical expertise of the

necessary steps for retrotting that meets the balancing and

performance needs of HDVs.

The last step before delivering the nal product involves

conducting technical tests and verifying performance of the

retrotted technology. Although there is no global regulation

for electric conversion inspections, most countries depend

on legislation for inspections of general vehicular alteration

and tuning. With the recent advancements of EV retrotting,

some countries have also started developing EV conversion–

specic legislation to ofcially regulate the practice. This is

an essential step to guarantee that the retrotted vehicle

not only operates within technical and safety parameters

but also does not present any risks to the nal user or to the

environment.

53 Kandagal, “EV retrot technology?”

54 EV Reporter, “E-2Wheeler retrotting: Scope and cost of conversion,”

last modied February 16, 2022, https://evreporter.com/e-2wheeler-

retrotting-scope-and-cost-of-conversion/.

55 Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

56 Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

Table 4: Retrotting process

Inial Inspecon

Inspect the vehicle to determine its ca-

pability of being retroed.

Thermal Element

Removal

Remove thermal elements to secure

space for the new components.

Technology

Integraon

Install retrong technologies, includ-

ing a motor, baeries, and a power

controller, among others.

Technical Tests and

Vericaons

Inspect the vehicle to guarantee it

meets performance and safety re-

quirements.

Electric Vehicle Retrotting: A Guide to Policy-Making

3. POLICY

MEASURES

3.1. GLOBAL BARRIERS FOR EV

RETROFITTING EXPANSION

EV retrotting has the potential to play an important

middle-ground role in the complete electrication of

transportation systems. Global economic and policy trends

for green technology, transport electrication, and climate-

friendly solutions provide an optimistic outlook of growth

and development for the market over the next decade.

However, persisting challenges still need to be addressed

for the industry to advance. Regulatory, technological, and

enabling barriers must be addressed for the ICE-to-EV

conversion industry to develop beyond its current infancy

stage into an adaptable and reliable low-carbon strategy for

national governments worldwide.

A major barrier identied concerns the lack of EV

retrotting-specic regulations within most countries. While

EV conversion kits are generally domestically available

in different markets – or, at the very least, the separate

57 Precedence Research, “Automotive retrot electric vehicle.”

parts to enable EV conversion –, the absence of specic

regulations and policies addressing the practice generates

safety hazards to both drivers and pedestrians. Given

that retrotting alters the mobility, weight distribution,

and electrical systems of the vehicle

, proper guidelines

and verication are necessary to assure its mechanical

integrity

. Another considerable point is that the lack

of safety guidelines or regulations compromises the

expansion of the industry. With no ofcial government

strategy, industry leaders hesitate in nancing the necessary

R&D investments to make the technology accessible to

consumers. Consequently, the lack of retrotting regulation

hinders the expansion of the industry into other markets and

jeopardizes its reach in different consumer pools.

A second major barrier concerns the current infancy level of

the retrotting industry and market. There is a restriction

on the variety of conversion kits available for consumers,

affecting the possible consumer pool for the technology.

Since ready-to-use conversion kits are made to be installed

into specic ICE models, consumers must undertake

specialized and costly individualized conversions if they do

not want to be limited by the market offer of kit models. The

market size also affects the total cost of ownership (TCO) of

possible retrotted vehicles. Without the necessary market

58 Hoeft, “Internal combustion engine to electric vehicle retrotting.”

59 Kukar, “Retrotting for electric vehicles.”

60 Winton, “Electric cars are too expensive for many.”

61 Kukar, “Retrotting for electric vehicles.”

Electric Vehicle Retrotting: A Guide to Policy-Making

investments and policy incentives, the technology might

not be cost-efcient to customers when compared to the

cost of the product and the cost of fuel for ICE vehicles.

While this report develops a nancial tool for more accurate

comparison between ICE, new EV, and retrotted vehicles,

the TCO of EV retrotting might still be a considerable

barrier to many possible consumers.

Lastly, there are environment-enabling challenges that

constrain the full expansion of retrotting solutions. The

lack of information available about EV conversion in many

countries, for example, generates hesitation and mistrust

from potential customers

. While new EVs have slowly been

gaining traction and popularity in the automobile market,

retrotting is still widely unknown by customers. The lack

of accessibility, visibility, and informational campaigns and

strategies leaves the solution out of consumers’ knowledge

and, consequently, underexplored. Additionally, this lack of

information can also result in improper conversion practices

that can present further risks to the technology’s legitimacy

and to users’ safety

Challenges must be addressed to allow the technology

to be further popularized. Public policies, incentives, and

regulatory systems play a major role in the expansion of

the EV retrot market.

Despite these barriers, several

countries present a scenario of policy best practices for the

recognition of EV retrotting as a process that is both viable

and worth investing in. The countries analyzed in this report

show comprehensive examples of public policies that are

specic to EV retrotting, allowing the industry to develop

and continue to grow.

3.2. ENABLING MEASURES

The following subchapter explores key enabling measures

for the EV retrotting industry and market’s further

development. It analyzes past experiences with similar

technologies as well as countries’ best practices to ofcially

support EV conversion, focusing on safety and technical

regulations, market incentives, R&D programs, and other

measures for normalization and expansion of the practice.

3.2.1 Safety and Technical Regulations

Safety and technical regulations are ofcial legislations

and standards that oversee the safety of the general

infrastructure and electrical systems of a vehicle. While

many of these standards align with those governing

manufacturing, retrotted vehicles must have their own set

of regulations to guarantee that the specic changes made

62 Kukar, “Retrotting for electric vehicles.”

63 Hoeft, “Internal combustion engine to electric vehicle retrotting.”

64 Meixner, “Electric vehicles enthusiasts convert their own petrol cars,

but engineers warn the risks of retrotting.”

65 Kukar, “Retrotting for electric vehicles.”

to the vehicle’s electric system, drivetrain, and other physical

attributes will not cause safety hazards to the driver and to

others within the vehicle’s range.

Ensuring a proper functioning of the electrical systems of a

retrotted vehicle is one of the main safety concerns after

a conversion. If not properly performed, the high voltage

of the newly inserted battery might cause sudden energy

releases and re hazards. Added batteries might also

present chemical risks if not properly tested and installed.

Another major concern is related to the drivetrain, which

were not initially projected to carry weighty batteries. If

installed without a proper engineering study, the battery

may cause weight distribution issues and later-set structural

damages to the vehicle’s drivetrain.

Currently, there is no standardization for retrotted EV

safety and technical standards. While individual components

can be acquired, the industry is still at infancy level in many

countries. Retrotting of old classic cars, for instance, might

be possible, but it is not strongly regulated beyond what

mandated for traditional EVs

. Some countries recognize

the potential of EV conversion for their decarbonization

goals and are creating the necessary legislation to oversee

and give incentives to its expansion

Some countries are taking a pioneer role on creating

regulatory standards. Taking inspiration from already

existing vehicular modication and tuning regulations,

they are working both on creating retrotting-specic

technical and safety standards as well as a simplication of

the certication process. Instead of testing all converted

vehicles, for example, a strategy many countries are adopting

are certifying mechanics and model-specic retrotting

kits

This strategy is being adopted more frequently amongst

countries, requiring the regularization of testing agencies

and the registration of specialized mechanics and

technicians. However, it is still common to nd regulations

that demand vehicle verication after the conversion

process, testing areas such as weight balancing, brake

performance, temperature resistance, noise levels, and

66 Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

67 Watts, Ghosh, and Hinshelwood, “Exploring the potential for electric

retrot regulations.”

68 Berggreen, “What was I thinking? A tale of an EV conversion that was

over before it began” last modied May 18, 2023 https://cleantechnica.

com/2018/06/02/what-was-i-thinking-a-tale-of-an-ev-conversion-that-

was-over-before-it-began/.

69 Santiago, “La CDMX invertirá 20 mdp em conversión de autos de

combustión a eléctricos” last modied May 18, 2023 https://politica.

expansion.mx/cdmx/2022/02/03/cdmx-inversion-20-mdp-innovacion-

motores-electricos.

70 MMA, “Tuning auto: Que dit la loi en France?” last modied October

29, 2020, https://www.mma.fr/zeroblabla/tuning-auto-reglementation-

france.html#:~:text=EST%20PAS%20PERMIS-,La%20personnalisation%20

d’un%20v%C3%A9hicule%20est%20libre%20dans%20la%20

mesure,%C3%A0%20la%20l%C3%A9gislation%20en%20vigueur.

Electric Vehicle Retrotting: A Guide to Policy-Making

wiring harnesses

. Other verication simplications

commonly seen are on the environmental certications –

which, if the vehicle is fully converted to electrical, should be

nullied

Despite the recent advances in legislation, there is still room

for improvement. EV retrotting regulations are often based

on pre-existing EV regulations, which make them inexible

to the realities of different retrotting solutions. Standards

are usually designed according to procedures from countries

with major OEMs, such as the US, the European Union,

and Japan, and are, therefore, unt to the local needs for

vehicles in different areas

. Comprehensive safety and

technical regulations must be designed according to the

local environment and through consultations with the local

technical authorities and representations.

3.2.2. Market Incentives

Market incentives are common policy mechanisms to reduce

prices and promote more competitiveness to strategic but

expensive technologies

. Governments show experience on

adopting different market incentives to EV retrotting, with

policies differing according to their end goal.

Some market incentives contemplate expanding and

diversifying the industry. Initial applications of EV

conversion should be adapted to popular vehicle models

of local markets, requiring active modeling from the local

industries and technicians

. While some countries have

strong OEMs that are taking the lead in developing new

retrotting technologies

, all governments that recognize

the decarbonizing potential of EV conversion must create

policy incentives to develop the local market.

The market expansion of EV retrotting can serve

as a support for the long-term electrication of the

transportation sector. It offers more varieties to how

consumers choose to electrify their mobility, thereby

71 EV Reporter, “Regulatory framework for retrotting in India”, last

modied May 18, 2023 https://evreporter.com/regulatory-framework-for-

retrotting-in-india/.

72 EV Reporter, “Regulatory framework for retrotting in India”, last

modied May 18, 2023 https://evreporter.com/regulatory-framework-for-

retrotting-in-india/.

73 Republic of Kenya, “Electric vehicle standards in Kenya: Draft

summary report.” https://www.transport.go.ke/department/images/climate/

Electric_mobility_standards.pdf

74 Hardman, Chandan, Tal, Turrentine, “The effectiveness of nancial

purchase incentives for battery electric vehicles – A review of the evidence.”

75 Hoeft, “International combustion engine to electric vehicle

retrotting: Potential customers’ needs, public perception, and business.”

76 Paul Myles, “Toyota joins retrot EV powertrain push,” Automotive,

last modied January 16, 2023, https://www.tu-auto.com/toyota-joins-

retrot-ev-powertrain-push/.

77 Libeau, “Retrotting: A frugal, circular, and inclusive solution do

decarbonize our vehicle eet.”

promoting the development of charging infrastructure to

make EVs cheaper and more convenient to use

. Similarly,

countries with long-term EV strategies should investigate

retrotting as a complementary strategy to generate more

jobs in the maintenance market, which may otherwise

shrink due to the cost-efcient nature of EV services when

compared to ICEs.

Another essential incentive measure is identifying the

key stakeholders for EV retrotting expansion and

engagement. The stakeholders are usually startups that

enable the implementation of the solution in the market,

and car suppliers and manufacturers that contribute for

the know-how and the supply of the necessary parts for the

retrotting kits in the market

. Major OEMs, universities,

and research centers also play a major role in the

development and enhancement of the technology – these

stakeholders will be further explored in the next subchapter.

Many governments choose to shift their focus to promotion

of a wider consumer base. The adaptable nature of

retrotting allows seamless integration within already

established nancial incentives, subsidies, rebates, and other

policy incentives in place for traditional EVs

. While these

measures are simple to be adopted, they must explicitly

include EV retrotting to avoid confusions from consumers

on the possible incentives to ICE-to-EV conversion

Governments may either include retrotted vehicles in the

already-existing policies, or ofcially register retrotted

vehicles as EVs after their conversion.

Ideally, however,

is the design and implementation of retrotting-specic

consumer incentives to strengthen and market the solution

to potential customers.

3.2.3. R&D Programs

A key area for EV retrotting expansion is investing on

research and development (R&D) programs. Some major

automobile OEMs have recently announced their expansion

plans into EV retrotting kits

, projecting market expansion

for the solution soon. R&D is essential for the growth and

diversication of the market, for the improvement of the

78 Paul Myles, “Toyota joins retrot EV powertrain push,” Automotive,

last modied January 16, 2023, https://www.tu-auto.com/toyota-joins-

retrot-ev-powertrain-push/.

79 Libeau, “Retrotting: A frugal, circular, and inclusive solution do

decarbonize our vehicle eet.”

80 Hoeft, “International combustion engine to electric vehicle

retrotting: Potential customers’ needs, public perception, and business.”

81 Scooter Doll, “Electric vehicle tax credits and rebates available in

the US, sorted by state,” Electrek, last modied October 5, 2022, https://

electrek.co/2022/10/05/ev-tax-credit-rebate-states-electric-vehicles/.

82 République Française, Le retrot électrique: Quel cadre legal? Quelle

prime à la conversion? 2022.

83 République Française, Le retrot électrique: Quel cadre legal? Quelle

prime à la conversion? 2022.

84 Takewaza, “Tesla escapes niche position.”

Electric Vehicle Retrotting: A Guide to Policy-Making

retrotting process, and for guaranteeing the safety and

positive experience of the customers

As a globally nascent industry, EV conversion’s main

actors have been start-ups and specialized technicians

aiming to electrify old or classic vehicles

. However, for

the industry to continue to expand and for retrotting to

become a competitive solution in clean transportation, more

investment is needed in powertrain technology, engineering

adaptation solutions of popular vehicles, and cost reduction

of the essential parts for retrotting, especially lithium-ion

batteries.

While these challenges might initially appear as big barriers

for the nascent market, a positive insight is that most of

these barriers are shared with the EV automobile industry.

R&D investments in EV retrotting solutions can be

incorporated within already existing or future electrication

strategies in the value chain of the major automobile OEMs.

Recent announcements from Ford

, GM

, and Toyota

solutions’ development in line with their decarbonization

strategies might help popularize retrotting amongst other

key transportation players.

Despite the positive outlook brought by recent private

sector engagements, more attention must be brought to the

role governments and public actors have on the expansion

and popularization of the industry. EV retrotting is a

solution closely related to adapting the real transportation

needs of a population

, and thus cannot be solely led by

major international players. Local capacity-building and

technology development are essential for the retrotting

market’s expansion.

Some countries have started working closely with their local

players to further develop retrotting solutions according

85 Hoeft, “International combustion engine to electric vehicle

retrotting: Potential customers’ needs, public perception, and business.”

86 Banerjee, “EV powertrain retrotment market gains traction

with inux of organized players”, Money Control, last modied May

9, 2023 https://www.moneycontrol.com/news/technology/auto/ev-

powertrain-retrotment-market-gains-traction-with-inux-of-organised-

players-8899181.html

87 Chris Randall, “Ford announces electric conversion motor.” Electrive,

last modied August 27, 2021, https://www.electrive.com/2021/08/27/

ford-announces-electric-conversion-motor/.

88 Paul A. Eisenstein, “GM set to join fast-growing EV conversion

market,” The Detroit Bureau, last modied July 22, 2022, https://www.

thedetroitbureau.com/2022/07/gm-set-to-join-fast-growing-ev-

conversion-market/.

89 Thom Taylor, “Toyota says it plans to convert old cars into EVs,” Motor

Biscuit, last modied January 13, 2023, https://www.motorbiscuit.com/

toyota-says-plans-to-convert-old-cars-into-evs/.

90 Libeau, “Retrotting: A frugal, circular, and inclusive solution to

decarbonize our vehicle eet”. OECD Forum, last modied May 19, 2023

https://www.oecd-forum.org/posts/retrotting-a-frugal-circular-and-

inclusive-solution-to-decarbonize-our-vehicle-eet.

to their population’s needs. Local and regional governments

have developed incentive schemes for two- and three-

wheeler conversions in India

and Sri Lanka

, reecting the

real mobility needs of their population. Major conversion

strategies identify and engage with local partners to

improve and promote EV conversion, creating new R&D

opportunities in the local markets.

Earmarked EV retrotting R&D investments are still

essential to signalize more active engagement of the

private sector in the industry. An important example comes

from France’s EUR 20 million investment in scaling up

industrial solutions for EV retrotting kits

. Combining

R&D investments with adaptations to national legislation

send strong signals of the country’s industries’ strategy of

expansion to other EU markets.

3.2.4. Other Measures

The last policy measures focus on the capacity-building

and information promotion of EV retrotting technologies.

Often being categorized as an indirect type of incentives,

these play a key role in the popularization of infant industries

and markets. Their incorporation into ofcial electrication

strategies is central for the long-term adoption of new

technological solutions amongst customers.

Customer surveys conducted in markets with integrated

retrotting technologies show that there is still a high

level of skepticism amongst the population

. The lack of

information on the safety and reliability of EV conversion

caused mistrust with potential customers, who changed

their opinions after they were exposed to reliable marketing

strategies. Industrial investments and market expansion

plans must thus be aligned with information strategies to

shift skepticism from the solution.

While each set of policy measures has it inherit value to

contribute to the expansion of the retrotting market in

one direction, it is their combination that will guarantee its

comprehensive adoption. Technical and safety regulations

should be adopted in conjunction with marketing

campaigns, while market expansion cannot be unlinked

from technological and innovation investments. Despite the

industry’s early global stage, countries have started adopting

successful strategies that must be analyzed for their best

practices.

91 EV Reporter, “FAQs about retrotment of electric 3Ws.”

92 Hamza, “Sri Lanka partners with USAID to convert petrol-run

tuktuks to electricity.” Economy Next, last modied May 19, 2023 https://

economynext.com/sri-lanka-partners-with-usaid-to-convert-petrol-run-

tuktuks-to-electricity-98704/.

93 Gouvernement Française, La concertation sur le retrot électricque

est lancée, 2022

94 Hoeft, “Internal combustion engine to electric vehicle retrotting.”

Electric Vehicle Retrotting: A Guide to Policy-Making

3.3. EV RETROFITTING POLICIES

AMONGST GGGI MEMBERS

Among 46 GGGI members considered, ve countries –

Australia, Indonesia, Nepal, Sri Lanka, and the UK –have

enactedEV Conversion legislation. When applying the

division of Technical Regulation, Incentive Measures, and

Environment Enabling Measures, only Indonesia possesses

all three sets of regulations.

All countries identied present technical legislation to

oversee the technical retrotting procedures and certify

the proper registration of newly converted vehicles.

The ve countries require a newly retrotted vehicle to

undergo technical assessments to verify the full operation

of safety systems. This procedure is either done by a

certied technician or by each designated ofce. After the

technical verication, converted vehicles are registered as

EVs in Australia and the UK, and as a converted vehicle in

Indonesia.

Ofcial EV conversion incentives were identied in

Indonesia, Nepal, and the UK. The Indonesian government

recognized EV retrotting as a favorable strategy for the

decarbonization of their 2-wheelers eet and adopted

subsidies for its promotion. Nepal and the UK have instead

chosen to explicitly include EV conversion within some

of their EV policy incentives, granting tax reductions to

converted vehicles.

The last set of EV retrotting regulations are those policies

to promote enabling environments. Within the identied

countries, only R&D policies were present amongst the

members. The Indonesian government has deducted R&D

costs for the development of EV parts in-country as an

attempt to lower prices for future EV production. On the

other hand, the Sri Lankan government has recently signed

a MoU with the United States to promote the research and

conversion of ICE three-wheelers to electric in the country.

The limited number of EV retrotting legislations amongst

GGGI members reects the infancy level in which the

global market is currently at. However, following prior

identication of 19 members having EV retrotting solutions

in their domestic markets, it is advisable for countries

to develop ICE to EV retrotting-specic standards and

legislations. Market stakeholders in key countries have been

pushing for a broader adoption of the solution to secure

market growth in line with the popularization of other

electric mobility solutions

A mapping of EV retrotting policies and regulations

amongst GGGI members was performed to identify the level

of experiences. The result is as seen below:

95 Asociación Latinoamericana de Retrot, “Movilidad, cambiar motores

de combustión por eléctricos y cómo reducir emisiones a um menor costo”.

Last modied June 13, 2023. https://plataformaurbana.cepal.org/sites/

default/les/2022-04/Movilidad%2C%20cambiar%20motores%20

de%20combusti%C3%B3n%20por%20el%C3%A9ctricos%20y%20

c%C3%B3mo%20reducir%20emisiones%20a%20un%20menor%20costo.

pdf.

Table 5: EV Retrotting Policies by GGGI Members**

GGGI Countries Region

EV Retrotting

Legislation

Technical

Regulations

Incentive

Measures

Environment

Enabling Measures

Angola Africa

• • • •

Australia Pacic

• • • •

Bahrain Middle East

• • • •

Burkina Faso Africa

• • • •

Cambodia Asia

• • • •

Colombia Latin America

• • • •

Costa Rica Latin America

• • • •

Côte d’Ivoire Africa

• • • •

Denmark Europe

• • • •

Ecuador Latin America

• • • •

Ethiopia Africa

• • • •

Fiji Pacic

• • • •

Guyana Latin America

• • • •

Hungary Europe

• • • •

Indonesia* Asia

• • • •

Electric Vehicle Retrotting: A Guide to Policy-Making

Jordan Middle East

• • • •

Kazakhstan Asia

• • • •

Kiribati Pacic

• • • •

RoK Asia

• • • •

Kyrgyz Republic Asia

• • • •

Lao PDR Asia

• • • •

Mexico Latin America

• • • •

Mongolia Asia

• • • •

Nepal Asia

• • • •

Nicaragua Latin America

• • • •

Norway Europe

• • • •

OECS Latin America

• • • •

Pakistan Asia

• • • •

Papua New Guinea Asia

• • • •

Paraguay Asia

• • • •

Peru Latin America

• • • •

Philippines Pacic

• • • •

Qatar Middle East

• • • •

Rwanda Africa

• • • •

Senegal Africa

• • • •

Sri Lanka* Asia

• • • •

Thailand Asia

• • • •

Tonga Pacic

• • • •

Turkmenistan Asia

• • • •

UAE Middle East

• • • •

Uganda Africa

• • • •

UK Europe

• • • •

Uzbekistan Asia

• • • •

Vanuatu Pacic

• • • •

Vietnam Asia

• • • •

Kenya* Africa

• • • •

* The countries marked have been selected as case studies for the nancial assessment chapter

** Refer to Appendix for further information on each policy identied

Electric Vehicle Retrotting: A Guide to Policy-Making

4.1. ECONOMIC BENEFITS FOR LDVs

Kenya’s 2018-2022 National Climate Change Action Plan

(NCAP) identies the development of domestic e-mobility

technology as a strategy for cutting GHG emissions and

adapting Kenya’s infrastructure to climate change

. Key

companies including Roam Electric have been leading

the e-mobility market in the country, working with the

government to create sustainable policy and market

conditions for the growth of the adoption rates in the

years to come

. Retrotting EV has been considered as

an option to accommodate the decarbonization demand

while maintaining accessible costs for the population

. In

Kenya, the conversion of passenger vehicles was adopted

with special attention to utility vehicles for the mining,

96 Government of Kenya, “National Climate Change Action Plan: Second

Implementation status Report for the FY2019/2020”.

97 Wachira, “Kenya’s electric vehicle market is raring to go”. Last modied

June 06, 2023. https://chinadialogue.net/en/transport/kenyas-electric-

vehicle-market-is-raring-to-go/

98 Siele, “Electric conversion: How Kenyan motorists are cutting

costs”, last modied May 02, 2023. https://businesstoday.co.ke/electric-

conversion-how-kenyan-motorists-are-cutting-costs/.

4. FINANCIAL

ASSESSMENT

safari, and tourism industries

. Considering more than

95% of registered cars being secondhand

100

, EV retrotting

technologies will play a prominent role of decarbonation in

Kenya transport sector.

In this line, this report conducted comparative economic

analysis of four-wheelers retrotting with the case of

Kenya. For the economic assessment of passenger vehicles

in Kenya, this report mainly refers to the 2019 GIZ report

“Updated Transport Data in Kenya 2018”. Additional data

were retrieved from the main EV retrotting company,

Roam Electric

101

- former Opibus –, and local data.

This analysis is to fairly reect the economic benets of

retrotted electric passenger vehicles. The baseline internal

combustion engine (ICE) passenger vehicle Landcruiser

70 Series 2023) is dened as the current 4W operating in

Nairobi that would be standard model in compliance with all

legal requirements and in accordance with standard current

business practices.

99 Page, “Opibus: The mobility startup converting Kenya to

electric vehicles”. Last modied June 06, 2023. https://edition.cnn.

com/2022/03/01/africa/opibus-kenya-electric-mobility-bus-motorcycle-

car-spc-intl/index.html

100 UNEP, “Used vehicles and the environment: A global overview of

used light duty vehicles-ow, scale, and regulation”.

101 Roam Electric. “Off Road”, last modied June 06 2023. https://www.

roam-electric.com/off-road

Electric Vehicle Retrotting: A Guide to Policy-Making

Capital expenditure (CAPEX) includes vehicle investment

costs and partial replacement investment costs such as

batteries. The projection of real battery prices for electric

4W is 2,131.5 USD based on local data. Operational

expenditure (OPEX) is mainly including maintenance and

energy costs including diesel for ICE vehicles and electricity

for electric ones. The market electricity price for E4Ws

is taken with the assumption of 9,221.16 kWh annual

consumption.

Comparative analysis of new ICE 4W vehicle, new electric

4W vehicle and retrotted electric 4W vehicle over the

lifespan of 15 years is conducted. The following table shows

key parameters utilized for nancial calculations.

Table 6. Key parameters for comparative Economic Analysis of

4Ws

Parameters New ICE 4W New E4W Retroed

E4W

CAPEX Vehicle

cost

USD 45,363.00

(KES

6,394,000)

USD

57,595.40

(KES

8,000,000)

USD

39,900.00*

(KES

5,542,110)

Baery

Replace-

ment Cost

N/A USD 2,131.50

(KES

300,000)**

USD

2,131.50

(KES

300,000)**

Subsidy N/A N/A N/A

OPEX Fuel Cost

per year

Diesel: USD

2,959.89/year

(USD 1.244/l)

USD 1,189.53/

year

(USD 0.129/

kWh)

USD

1,189.53/

year

(USD 0.129/

kWh)

Annual

Mainte-

nance

cost

USD 3,500

(KES 488,250)

***

USD 1,247.82

(KES 173,956)

USD

1,247.82

(KES

173,956)

***

Annual

Insurance

N/A N/A N/A

Interest

rate

9.5% 9.5% 9.5%

TECH-

NICAL

Lifespan 15 years 15 years 15 years***

Driving

Distance

60.8km/day (22,223 km/year****)

Fuel

eciency

per km

9.34 km/L 2.41 km/kWh 2.41 km/

kWh

Emission

factor

0.17Kg CO2e/

km ****

0.2kgCO2e/

kWh

0.2kgCO2e/

kWh*****

* Cost of retrotted E4W: Used ICE vehicle cost + conversion kit +

service fee (obtained from roam-electric.com)

** Retrieved from Subbru, 2022 (https://ke.opera.news/ke/en/

auto/f17a8c2cee84cd8b34bec2919e6611b4)

*** Retrieved from Roam Electric website (roam-electric.com)

**** Retrieved from GIZ, 2019

***** Retrieved from Our World in Data, 2023 (https://

ourworldindata.org/co2/country/kenya#carbon-intensity-how-

much-carbon-does-it-emit-per-unit-of-energy)

Economic analysis is to estimate the economic benets

of adopting retrotted E4Ws by comparing them with

second-hand ICE 4Ws and new E4Ws. In this analysis, total

cost of ownership (TCO) and unit travel cost (USD/km)

indicators are used to determine the economic benets.

The economic analysis is carried out according to the

methodology presented in this report, utilizing 9.5% of the

interest rate set by Trading Economics. The following table

shows the expected economic benets of retrotted electric

4W vehicles. TCO of incremental economic benets from

3 types of vehicle options is calculated as USD 100,736

per new ICE 4W vehicle, USD 82,913 per new E4W, and

USD 65,217 per retrotted E4W respectively. The unit

travel cost of retrotted E4W is 0.249 USD/km, which is

comparatively lower than the other two options.

Table 7. The result of comparative Economic Analysis of 4Ws

New ICE 4W New E4W

Retroed

E4W

Total Cost of

Ownership (TCO)

100,736 82,913 65,217

Electric Vehicle Retrotting: A Guide to Policy-Making

Travel Cost per

0.427 0.302 0.249

The following table shows the expected environmental

impact of the retrotted E4W eet per annum. In terms

of local pollutants, new E4W and retrotted E4W options

reduce PM

2.5

and NO

emissions by 100%.

Table 8. Environmental Impacts of 4Ws

GHG Emissions New ICE 4W New E4W

Retroed

E4W

(kgCO2e)

Per km 0.17 0.08 0.08

Annual 3,777.91 1,844.23 1,844.23

Lifespan 56,668.65 27,663.49 27,663.49

2.5

(g)

Per km 0.090 0.000 0.000

Annual 1,991.206 0.000 0.000

Lifespan 29,868.083 0.000 0.000

(kg)

Per km 0.016 0.000 0.000

Annual 348.068 0.000 0.000

Lifespan 5,221.018 0.000 0.000

4.2. ECONOMIC BENEFITS FOR 3Ws

Sri Lankan mobility patterns are heavily reliant on private

vehicle ownership, with three-wheelers accounting for

the third most recurrent vehicle type

102

. Converting the

transportation eet to electric is strategic not only to

reduce the country’s emissions and reach its mitigation

goals but also to reduce Sri Lanka’s dependency on fossil

fuels

103

. This is specically important in the face of recent

102 Madhuwanthi et al, “Factors inuencing to travel behavior on

transport mode choice”

103 Gajanayake et al, “Study of the impact of electric vehicles on fuel

consumption and carbon dioxide emission scenarios in Sri Lanka”

severe economic crises caused by fuel shortages

104

. Three-

wheelers in Sri Lanka are a key transportation mode for

passenger carriers, benetting specically the elderly, the

children, middle-income families, and women

105

. With the

advancement of mobile taxi apps and services

106

, the three-

wheelers eet is expected to expand in the years to come,

creating a promising market for three-wheeler retrotting

services and technologies.

For the nancial analysis of three-wheelers retrotting,

the case of Sri Lanka was chosen. The data used for the

nancial assessment of 3-wheeler vehicles in Sri Lanka

was mainly based in the Thilakshan, Sugathapala, and

Bandara (2019) report “Electric Vehicles as a Sustainable

Mode of Transportation – The Sri Lankan Context” and

the Gajanayake et al (2020) report “Study of the Impact of

Electric Vehicle on Fuel Consumption and Carbon Dioxide

Emission Scenarios in Sri Lanka”. Other additional data were

retrieved from the main EV retrotting company identied,

SL Mobility

107

This analysis is to fairly reect the economic benets of

retrotted electric passenger vehicles. The baseline internal

combustion engine (ICE) 3W vehicle is dened as the

currently operating model in Colombo city in compliance

with all legal requirements and in accordance with standard

current business practices.

CAPEX includes vehicle investment costs and partial

replacement investment costs such as batteries. The

projection for real battery prices for electric 3W is 1,500

USD based on UNDP data. OPEX is mainly including

maintenance and energy costs which differ relative to the

technology used. The market electricity price for E3Ws

is taken with the assumption of 4,701.2 kWh annual

consumption.

Comparative analysis of new ICE 3W vehicle, new electric

3W vehicle and retrotted electric 3W vehicle over the

lifespan of 10 years is conducted. The following table shows

key parameters used for nancial calculations.

104 Kurukulasuriya, “Sri Lanka’s energy crisis is a glimpse of what’s

coming”. Last modied June 12, 2023. https://www.undp.org/blog/sri-

lankas-energy-crisis-glimpse-whats-coming

105 Madhuwanthi et al, “Factors inuencing to travel behavior on

transport mode choice”

106 Goldstein Market Intelligence, “Sri Lanka three-wheeler market

trends, challenges, key players, demand & growth drivers analysis with

regional outlook for forecast period 2016-2024”. Last modied June 12,

2023. https://www.goldsteinresearch.com/report/sri-lanka-three-wheeler-

market-analysis

107 SL Mobility. “Conversion Kit”, last modied June 07 2023. https://

www.slmobility.com/products/conversion-kit

Electric Vehicle Retrotting: A Guide to Policy-Making

Table 9. Key parameters for comparative Economic Analysis of

3Ws

Parameters New ICE 3W New E3W Retroed

E3W

CAPEX Vehicle

cost

USD 3,259*

(LKR

1,000,000)

USD 4,562*

(LKR

1,400,000)

USD 3,650*

(LKR

1,120,000)

Baery

Replace-

ment

Cost

N/A USD 1,500* USD 1,500*

Subsidy N/A N/A N/A

OPEX Fuel Cost

per year

USD 3,464.19

(LKR

1,005,903.43)

USD 1,209.60

(LKR 367,584)

USD

1,209.60

(LKR

367,584)

Annual

Mainte-

nance

cost

USD 207.33

(LKR 60,204)

USD 144.97

(LKR 42, 097)

USD 144.97

(LKR 42, 097)

Annual

Insurance

N/A N/A N/A

Interest

rate

15.5% 15.5% 15.5%

TECH-

NICAL

Lifespan 10 years 10 years 10 years

Driving

Distance

161km/day (58,765 km/year**)

Fuel

eciency

per km

20 km/L** 12.5 km/kWh 12.5 km/

kWh ****

Emission

factor

2.4 Kg CO2e/

km***

Kg C/kgOE

0.585kgCO2e/

kWh*****

0.585kg-

CO2e/

kWh*****

* Retrieved from the nancial-economic analysis on Tuktuk

conversions in SL done by the UNDP

** Retrieved from Thilaskhan, Sugathapal, Bandara (2019)

*** Retrieved from SL Mobility (slmobility.com)

**** Retrieved from UNEP, 2019 (https://www.unep.org/

news-and-stories/story/taming-sputtering-tuk-tuk-sri-lankan-

innovator-develops-affordable-electric)

***** Retrieved from Central Bank of Sri Lanka (2017)

Economic analysis is to estimate the economic benets of

adopting retrotted E3Ws by comparing 3 types of 3W

vehicles. In this analysis, total cost of ownership (TCO) and

unit travel cost (USD/km) indicators are used to determine

the economic benets. The economic analysis is carried

out according to the methodology presented in this report,

utilizing 15.5% of the interest rate set by Trading Economics.

The following table shows the expected economic benets

of retrotted electric 3W vehicles. TCO of incremental

economic benets from 3 types of vehicle options is

calculated as USD 27,487 per new ICE 3W vehicle, USD

16,162 per new E3W, and USD 15,250 per retrotted E3W

respectively. The unit travel cost of a retrotted E3W is

0.033 USD/km, which is comparatively lower than an ICE

3W (0.066 USD/km) and a New E3W (0.034USD/km).

Table 10. The result of comparative Economic Analysis of 3Ws

New ICE 3W New E3W

Retroed

E3W

Total Cost of

Ownership

(TCO)

27,487 16,162 15,250

Travel Cost

per km

0.066 0.034 0.033

The following table shows the expected environmental

impact of the retrotted E3W eet per annum. In terms

of local pollutants, new E3W and retrotted E3W options

reduce PM

2.5

and NO

emissions by 100%.

Table 11. Environmental Impacts of 3Ws

Electric Vehicle Retrotting: A Guide to Policy-Making

GHG Emissions ICE 3W New E3W

Retroed

E3W

(kgCO2e)

Per km 0.12 0.05 0.05

Annual 7,051.80 2,750.20 2,750.20

Lifespan 70,518.00 27,502.02 27,502.02

2.5

(g)

Per km 0.013 0.000 0.000

Annual 785.744 0.000 0.000

Lifespan 7,857.438 0.000 0.000

(kg)

Per km 0.002 0.000 0.000

Annual 116.073 0.000 0.000

Lifespan 1,160.729 0.000 0.000

4.3. ECONOMIC BENEFITS FOR 2Ws

For the nancial analysis of two-wheelers retrotting,

the case of Indonesia was chosen. Despite its archipelago

formation, Indonesia’s transportation is dominated by

the road subsector – with over 90% of the modal shares

for passengers being in-road

108

. Particularly motorcycles,

consistuting over 80% of the country’s land transportation

mods,have gained increasing popularity.

109

. In a move to

attempt to curb GHG emissions, the Indonesian government

implemented legal frameworks and tax incentives to

increase the adoption rates of electric vehicles – specically

electric motorcycles

110

. The E2W conversion is an innovative

solution that holds promising potential for expansion in the

Indonesian market.

The data used for the nancial assessment of passenger

vehicles Indonesia was mainly based in the Afraah et al

(2021) report “Comparing Total Cost of Ownership of

Electric and Conventional Motorcycles in Indonesia”.

This analysis is to fairly reect the economic benets of

retrotted electric two wheelers. The baseline internal

combustion engine (ICE) two-wheeler is dened as the

current two-wheeler operating in the West Java Province

that would be standard model in compliance with all legal

requirements and in accordance with standard current

business practices.

CAPEX includes vehicle investment costs and partial

replacement investment costs such as batteries. The

108 Asian Development Bank, “Indonesia: Transport sector assessment,

strategy, and road map”

109 Asian Development Bank, “Indonesia’s Summary Transport

Assessment”.

110 Habibie, Sutopo, “A literature review: Commercialization study of

electric motorcycle conversion in Indonesia”

projection of real battery prices for electric 2W is 149.28

USD. OPEX primarily covers maintenance and energy

costs which vary based on the technology used. The market

electricity price for E2Ws is taken with the assumption of

361.13 kWh annual consumption.

Comparative analysis of new ICE 2W vehicle, new electric

2W vehicle and retrotted electric 2W vehicle over the

lifespan of 15 years is conducted. The following table shows

default parameters used for nancial calculations.

Table 12. Key parameters for comparative Economic Analysis of

2Ws

Parameters New ICE 2W New E2W Retroed

E2W

CAPEX Vehicle

cost

USD

1,187.58 (IDR

17,650,000)

USD

1,277.74 (IDR

18,990,000)

USD

1,914.26

(IDR

28,450,000)

million*

Baery

Replace-

ment Cost

N/A USD 149.28

(2,203,260

IDR)**

USD 149.28

(2,203,260

IDR)**

Subsidy N/A USD 471 (IDR

7,000,000)

USD

471 (IDR

7,000,000)

OPEX Fuel Cost

per year

USD 160.21

(USD 0.95 per

litre)

USD 28.89

(USD 0.08 per

kWh)

USD 28.89

(USD 0.08

per kWh)

Annual

Mainte-

nance

cost

USD 8.10

(IDR 119,000)

USD 4.76

(IDR 70,000)

per ser-

vice***

USD 4.76

(IDR 70,000)

per service

***

Annual

Insurance

1.5% of vehicle

price

1.5% of vehi-

cle price

1.5% of

vehicle

price***

Interest

rate

5.75% 5.75% 5.75%****

TECH-

NICAL

Lifespan 15 years 15 years 15 years

Driving

Distance

28km/day (10,220 km/year)***

Fuel

eciency

per km

60.6 km/L 28.3 km/kWh 28.3 km/

kWh

Emission

factor

2.3g CO2e/km 0.81kgCO2e/

kWh

0.81kg-

CO2e/

kWh*****

Electric Vehicle Retrotting: A Guide to Policy-Making

* Cost of retrotted E2W: Used ICE vehicle cost + conversion kit

+ service fee (calculated from data available by Afraah et al, 2021)

** Retrieved from Afraah et al, 2021

*** Retrieved from Afraah et al, 2021

**** Retrieved from Trading Economics, 2023

***** Retrieved from Climate Transparency, 2021

Economic analysis is to estimate the economic benets of

adopting retrotted E2Ws by comparing 3 types of 3W

vehicles. In this analysis, total cost of ownership (TCO)

and unit travel cost (USD/km) indicators are used to

determine the economic benets. The economic analysis

is carried out according to the methodology presented in

this report, utilizing 5.75% of the interest rate set by the

trading economics. The following table shows the expected

economic benets of retrotted electric 2W vehicles. TCO

of incremental economic benets from 3 types of vehicle

options is calculated as USD 3,134 per New ICE 2W vehicle,

USD 1,700 per New E2W, and USD 2,436 per retrotted

E2W respectively. The unit travel cost of a retrotted E2W

is 0.018 USD/km, which is lower than an ICE 2W (0.026

USD/km), but higher than a New E2W (0.013 USD/km).

Table 13. The result of comparative Economic Analysis of 2Ws

New ICE 2W New E2W Retroed E2W

Total Cost of

Ownership

(TCO)

3,134 1,700 2,436

Travel Cost

per km

0.026 0.013 0.018

The following table shows the expected environmental

impact of the retrotted E2W eet per annum. In terms

of local pollutants, new E2W and retrotted E2W options

reduce PM

2.5

and NO

emissions by 100%.

Table 14. Environmental Impacts of 2Ws

GHG Emissions

New ICE

New E2W

Retroed

E2W

(kgCO2e)

Per km 0.04 0.03 0.03

Annual 387.89 292.52 292.52

Lifespan 5,818.32 4,387.74 4,387.74

2.5

(g)

Per km 0.007 0.000 0.000

Annual 68.326 0.000 0.000

Lifespan 1,024.883 0.000 0.000

(kg)

Per km 0.001 0.000 0.000

Annual 10.093 0.000 0.000

Lifespan 151.399 0.000 0.000

Electric Vehicle Retrotting: A Guide to Policy-Making

5.1. FRANCE

While not the rst in the European Union to adopt specic

strategies and regulations to enable the expansion and

popularization of EV retrotting, France’s policy prole

and history provide a relevant case for analysis. The

country already had strict laws for vehicular tuning and

modications, requiring any transformative modication

(i.e., modications that affect the vehicle’s descriptive

characteristics, or categorization) to be ofcially registered

and altered in the vehicle’s documentation.

111

retrotting previously followed a similarly strict process,

requiring each individual vehicle to be re-registered and

veried by specialists before being given authorization for

circulation—a costly and time-consuming process.

112

A modication in the legislation in 2020, however, allowed

for a simplication of the certication process. Rather

than focusing on the certication of each vehicle, the new

legislation allows for the homologation of EV kits by model.

The EV conversion kits must be submitted to the authorities

111 MMA, “Tuning auto: Que dit la loi en France?” last modied October

29, 2020, https://www.mma.fr/zeroblabla/tuning-auto-reglementation-

france.html#:~:text=EST%20PAS%20PERMIS-,La%20personnalisation%20

d’un%20v%C3%A9hicule%20est%20libre%20dans%20la%20

mesure,%C3%A0%20la%20l%C3%A9gislation%20en%20vigueur.

112 Luthereau, “Le retrot électrique.”

5. CASE STUDIES

for technical verication and, after approval, can be installed

in vehicles that i) are roadworthy, ii) are registered in

France, and iii) are over ve years old.

113

Customers must

seek government-certied technicians for the installation

of government-approved EV conversion kits, warranting a

Certicate of Conformity and a modication of the vehicle’s

registration card to an EV.

114

Converted EVs are ofcially registered not only as EVs but

also as new vehicles under insurance companies, allowing

for older vehicles to be given greater benets for insurance

after conversion.

115

Additionally, because converted EVs

are registered as EVs, with no differentiation given to their

converted hardware, they benet from other government

incentives for EV acquisition and ownership. An important

example is the explicit consideration of EV conversion

in France’s EV rebate scheme, since April 2022, making

vehicles eligible for rebates of EUR 1,100 for two- and

three-wheelers, EUR 2,500 to 5,000 for four-wheelers, and

EUR 5,000 to 9,000 for HDVs.

116

Regularization of the EV conversion process and

the inclusion of EV conversion within the country’s

113 Transition One, Homepage, accessed October 3, 2022.

114 République Française, Arrêté du 13 mars 2020 relatif aux conditions

de transformation des véhicules à motorisation thermique en motorisation

électrique à batterie ou à pile à combustible, 2020.

115 TOLV, Choisir la meilleure assurance pour son véhicule après retrot,

accessed January 20, 2023.

116 République Française, Le retrot électrique: Quel cadre legal? Quelle

prime à la conversion? 2022.

Electric Vehicle Retrotting: A Guide to Policy-Making

electrication incentive schemes follow the national strategy

of decarbonizing the transportation system and investments

in the innovation of the national automobile sector.

117

retrotting is regarded as a complementary solution to new

EVs, and start-up companies focused on the French market

are rst investing in the development and homologation

of EV retrot kits of popular French vehicle models to, in a

second phase, expand the technology to the wider European

Union market.

118

The French legislation was ofcially changed in 2020,

allowing companies to adapt their production system for the

new challenge of EV conversion. Since then, the government

has not only promoted direct EV retrotting incentives but

has also announced an investment of EUR 20 million to

retrotting professionals “to nance industrial solutions that

allow the technology to be scaled up in order to lower the

unit cost” of each EV conversion kit.

119

With the purpose of

democratizing EV retrotting, France is actively nancing

and exploring innovative solutions and technologies within

its automobile sector to adapt to the decarbonization

ambitions of the European Union, giving EV retrotting the

policy portfolio required for its development.

Figure 6: Transition-One electric Renault Twingo II conver-

sion

120

5.2. UNITED STATES

Despite already existing for many years, the United

States’ EV retrotting market mainly targets the

conversion of classic and alternative vehicles, enabling

their transformation to an electried automobile

system.

121

EV conversion companies operate on a small

scale, usually working on a custom model basis to allow

117 Luthereau, “Le retrot électrique.”

118 Luthereau, “Le retrot électrique.”

119 Gouvernement Française, La concertation sur le retrot électricque est

lancée, 2022.

120 Eric C. Evarts, “French company makes EV conversions easy

for old clunkers,” Green Car Reports, last modied 2019, https://www.

greencarreports.com/news/1124381_french-company-makes-ev-

conversions-easy-for-old-clunkers.

121 David M. Kuchta, “Best EV conversion companies,” Treehugger,

last modied December 12, 2022, https://www.treehugger.com/electric-

vehicle-ev-conversion-companies-85249.

for more adaptability of older classic vehicles. Although

customization remains a popular form of EV retrotting in

the US, recent state-level regulations and policies toward a

possible transition of the market, with modern retrotting

alternatives becoming more common for the usual

customer.

122

The United States requires federal legislation certifying

the safety and regulating the procedure for EV conversion.

Ofcial safety standards and regulations of the US

Environmental Protection Agency and the National

Highway Trafc Safety Administration dictate that vehicle

conversions requiring the addition of heavy battery systems

or additional fuel tanks—which may alter a vehicle’s center

of gravity, payload capacity, or handling characteristics—

need to be crash-tested and certied.

123

Similarly, vehicle

owners interested in converting their vehicles must work

with the manufacturer or an authorized representative. The

conversion is performed by a technician associated with

the manufacturer, who holds the relevant emissions and

tampering certications.

124

While national legislation governs conversion procedure

and safety certication, states possess the jurisdiction to

promote additional safety standards and EV conversion

incentives. Examples of state-level incentives are ownership

tax exemptions in Arizona, an income tax credit in

Washington, D.C.,

125

and a rebate system for EV conversion

in California.

126

In addition to the rebate incentive, California

developed guidelines for qualifying conversion types and

eligible motors, power systems, and parts.

127

During a time of decarbonization and modernization

of transportation eets, the United States’ automobile

market and customer base faces the challenge of trading

older vehicles—many of them associated with collectors—

for newer, more expensive EV models. While national

legislation provides clear guidelines to ensure the safety

and optimization of EV conversion, state-level incentives

and guidelines are essential for adapting the country’s

122 Hybrid Center, “12 Great Electric Car Conversion Companies

Reviewed,” last modied May 13, 2021, https://www.hybridcenter.org/

electric-car-conversion-companies/.

123 U.S. Department of Energy, “Propane Laws and Incentives in

Federal” accessed January 12, 2023, https://afdc.energy.gov/fuels/laws/

LPG?state=US.

124 U.S. Department of Energy, “Conversion and tampering regulations.”

125 Scooter Doll, “Electric vehicle tax credits and rebates available in

the US, sorted by state,” Electrek, last modied October 5, 2022, https://

electrek.co/2022/10/05/ev-tax-credit-rebate-states-electric-vehicles/.

126 Openstates, “Vehicular air pollution: Zero-emission aftermarket

conversion project,” AB-2350, last modied 2022, https://openstates.

org/ca/bills/20212022/AB2350/#:~:text=This%20bill%20would%20

require%20the,been%20converted%20into%20a%20zero%2D.

127 Openstates, “Vehicular air pollution.”

Electric Vehicle Retrotting: A Guide to Policy-Making

transportation system and enhancing public perception of

EVs to greener and cleaner alternatives.

128

Figure 7: Zelectric, a conversion of `50s and ‘60s Beetles and

Porsches

129

5.3. INDIA

EV retrotting services are available across India, with

different companies working in the retail of retrotting kits

and in the technical procedure for the conversion itself.

Most of the current market players are scattered, composed

mainly of a diverse start-up collective that does not operate

with state- or federal-level boosts.

130

The maturity of

the EV conversion market can increase with the further

development of policies and regulations, which can also

benet from a consumer environment that seeks new, clean

alternatives for variousvehicle types.

131

The Indian national government promulgated amendments

to the AIS 123 regulation, with Amendment N. 3 providing

the guidelines for pure electric conversion kits.

132

The

guidelines establish the technical, mechanical, and

safety tests and procedures that retrotted vehicles

must undergo

133

—excluding environmental tests to

reduce costs.

134

Additionally, the guidelines clarify that

EV conversion kits must be submitted for approval and

128 David Tracy, “California may soon pay you to convert your car to

an EV and I hope the federal government follows suit,” The Autopian, last

modied May 5, 2022, https://www.theautopian.com/california-may-soon-

pay-you-to-convert-your-car-to-electric-power-and-i-hope-the-federal-

government-follows-suit/.

129 Roy Furchgott, “A trip to the garage, for an electric switch,” The

New York Times, last modied April 23, 2020, https://www.nytimes.

com/2020/04/23/business/electric-car-conversions.html.

130 Avishek Banerjee, “EV powertrain retrotment market gains

traction with inux of organised players,” Money Control, last modied

July 30, 2022, https://www.moneycontrol.com/news/technology/auto/ev-

powertrain-retrotment-market-gains-traction-with-inux-of-organised-

players-8899181.html.

131 Banerjee, “EV powertrain retrotment market.”

132 Indian Government, AIS-123 Amendment 2, 2018.

133 Indian Government, AIS-123.

134 EV Reporter, “Regulatory framework for retrotting in India –

compiled by ARAI,” last modied February 28, 2022, https://evreporter.

com/regulatory-framework-for-retrotting-in-india/.

validation by the manufacturers, with certication issued

after approval.

135

Once certied, the manufacturers are

allowed to appoint dealers to sell the kits, and retrot

vehicles must later be reregistered in their region transport

ofces (RTOs) as EVs.

136

Delhi, in particular, presents a prominent market for EV

retrotting, with the city already accounting for over

six times the number of EVs compared to the rest of the

country.

137

With a National Green Tribunal 2015 ruling that

bans diesel vehicles older than 10 years from city roads, EV-

converted vehicles have recently been allowed to bypass the

decision.

138

With concomitant investments in public charging

infrastructure, EV conversion is now ofcially recognized as

a cost-effective and increasingly popular alternative.

An important factor of the Indian retrotting market is

its inclusivity of other types of vehicles, especially three-

wheelers. There is an increasing number of start-ups

focused on the conversion of three-wheelers that have

already received certication, with a big share of the

country’s market being destined to these vehicles.

139

Additionally, some states have already recognized the

potential of three-wheeler conversion and are promoting

incentives to democratize the practice. The state

government of Karnataka, for example, encourages the

conversion of existing ICE rickshaws in the city of Bengaluru

for its 2030 decarbonization goals, while the state of

Telangana includes subsidies of 15% of up to INR 15,000 for

the rst 3,000 retrotted general three-wheelers.

140

In India, EV retrotting has found fertile ground—with a

growing demand for decarbonization and cost-effective

solutions. The regularization of start-ups already present in

the market will allow for further expansion of the customer

base, with incentives (e.g., the bypassing of diesel bans in

Delhi) working in favor of the popularization of the practice.

An interesting factor, however, is the adaptation of EV

retrotting to the local demand of three-wheeler users—

an opportunity recognized by Karnataka and Telangana.

Further policies must be developed to both organize the

current market and promote EV retrotting for different

135 Indian Government, AIS-123 Amendment 2, 2018.

136 EV Reporter, “Regulatory framework for retrotting in India.”

137 Sunainaa Chadha, “Why Delhi is on track to emerging as the EV

capital of India,” The Times of India, last modied December 15, 2021,

https://timesondia.indiatimes.com/business/india-business/why-delhi-is-

on-track-to-emerging-as-the-ev-capital-of-india/articleshow/88298208.

cms.

138 Chadha, “Why Delhi is on track.”

139 EV Reporter, “FAQs about retrotment of electric 3Ws – answered

by Avinash Reddy,” last modied May 19, 2021, https://evreporter.com/

faqs-about-retrotment-of-electric-3ws/.

140 EV Reporter, “FAQs about retrotment of electric 3Ws.”

Electric Vehicle Retrotting: A Guide to Policy-Making

vehicle types as a safe, cost-effective, and efcient

alternative.

Figure 8: Conversion of an old car to electric in India

141

5.4. JAPAN

Despite the historical relevance the country has had in the

passenger vehicle market, Japan has seen a slow growth

in EV adoption throughout the years.

142

Some automobile

giants, such as Nissan and Toyota, already have experience

developing and producing low-emission vehicles in the

global market, such as the Nissan Leaf and Toyota’s hybrid

model Prius. However, with EVs accounting for less than

2% of new vehicle sales in the domestic market by the end

of 2022, drivers face a challenging low amount of public

charging infrastructure that compromise further public

acceptance for EV models.

143

However, Japan’s potential inuence in the global

automobile transition is not lost, and the country seems

to have changed its strategy to enable the expansion of

carbon-free transportation. The Japanese government has

announced its pledge for carbon neutrality by 2050 and a

ban on sales of domestic ICE vehicles by the mid-2030s.

144

As companies expect the government to announce further

policies to facilitate the electrication of road vehicles, they

are disclosing new EV plans. Japanese OEMs have recently

announced EV strategies that match the commitments

of other foreign giants and infrastructure investments to

enable a conducive environment for the transition.

145

Such a commitment came from Japanese giant Toyota,

141 Akshat Ajeya, “Why scrap your old car? Convert it to electric, here’s

how!” Go Mechanic Blog, last modied January 4, 2020, https://gomechanic.

in/blog/convert-your-old-car-to-electric/.

142 Ko Fujioka, “Japan to relax rules on fast EV chargers, jump-starting

rollout,” Nikkei Asia, last modied January 4, 2023, https://asia.nikkei.com/

Business/Automobiles/Japan-to-relax-rules-on-fast-EV-chargers-jump-

starting-rollout.

143 Fujioka, “Japan to relax rules on fast EV chargers.”

144 Shiho Takewaza, “Tesla escapes niche position as Japan starts to

embrace EVs,” The Japan Times, last modied February 7, 2022, https://

www.japantimes.co.jp/news/2022/02/07/business/corporate-business/

tesla-future-japan/.

145 Takewaza, “Tesla escapes niche position.”

with an investment announcement of USD 70 billion in the

electrication of its vehicles and the production of batteries

by 2030.

146

However, instead of focusing on the production

of new EV models, Toyota has chosen to focus on developing

EV conversion for their old ICE vehicles. Akio Toyoda, the

company’s chief executive, argues that retrotting would

give customers a wider variety of choices and allow some

markets that are not yet adapted for EVs to gradually

transition into electrication.

147

Toyota seeks to provide alternatives to new EV models

in the market, basing their EV strategy on the creation of

retrotting solutions. The company’s “conversion” strategy

was announced in January 2023 with the exhibition of both

a battery electric vehicle and a hydrogen-powered version of

the Toyota AE86 series to display the variety of possibilities

they are willing to develop.

148

Despite being at an initial

stage, Toyota’s push into the EV retrotting market has the

potential of igniting similar responses from other automobile

giants in the years ahead.

Figure 9: Toyota CEO Akio Toyoda at the Tokyo Auto Salon

149

5.5. KENYA

EV retrotting gained a special focus in Kenya as a viable

solution to introduce electrication in the country’s

transportation system. The Kenyan government pledged to

146 Paul Myles, “Toyota joins retrot EV powertrain push,” Automotive,

last modied January 16, 2023, https://www.tu-auto.com/toyota-joins-

retrot-ev-powertrain-push/.

147 Bethany Biron, “Toyota says it plans to transform older cars into

eco-friendly models to reduce carbon emissions, as the carmaker faces

increased criticism for EV hesitancy,” Business Insider India, last modied

January 16, 2023, https://www.businessinsider.in/thelife/news/toyota-

says-it-plans-to-transform-older-cars-into-eco-friendly-models-to-

reduce-carbon-emissions-as-the-carmaker-faces-increased-criticism-for-

ev-hesitancy/articleshow/97012468.cms.

148 Taylor, “Toyota says it plans to convert old cars into EVs.”

149 Biron, “Toyota says it plans to transform older cars.”

Electric Vehicle Retrotting: A Guide to Policy-Making

fully transition to ZEVs during the COP26

150

but accounted

with only 350 registered EVs by the end of 2022

151

Intending to explore the opportunities that arise from the

country’s mainly renewable energy matrix – with over

90% of Kenya’s power coming from sources such as solar,

wind, and thermal

152

–, the Kenyan government is slowly

introducing EV-friendly regulations to boost the market and

attract domestic and foreign investments in the sector

153

One of the main companies of the sector is Roam Electric

(former Opibus). Founded in 2017, Roam rst introduced

their EV solutions in Kenya to ll an identied gap in

the domestic market by providing EV conversion to 4x4

vehicles

154

. Targeting the safari and tourism industries, Roam

was able to grow its client-base by focusing on vehicles with

specic routes, predictable range capacity, and without

other cheap electrication alternatives in the domestic

market

155

. A kickstart through 4x4 EV conversion allowed

Roam to expand their portfolio to include domestically

produced electric two-wheelers and to invest in EV

conversion solutions to public transportation

156

Roam’s focus on four-wheeler EV conversion is particularly

interesting to the Kenyan market. Despite its renewable-

focused energy sources, urban centers such as Nairobi

present high levels of air pollution due to GHG and air

pollutants (AP) emissions by transportation

157

. This is

partially due to a combination of high rates of importation

of second-hand vehicles – with over 95% its light-duty eet

150 Nyabira, Muigai, Onyango, “Why Kenya could be getting ahead of

itself in electric vehicle drive”. Last modied June 20, 2023, https://www.

businessdailyafrica.com/bd/opinion-analysis/columnists/why-kenya-could-

be-getting-ahead-in-electric-vehicles-drive--4167214

151 ESI Africa, “Kenya making great strides to become Africa’s electric

vehicle hub”. Last modied June 14, 2023, https://www.esi-africa.com/east-

africa/kenya-making-great-strides-to-become-africas-electric-vehicle-hub/

152 ESI Africa, “Kenya making great strides to become Africa’s electric

vehicle hub”. Last modied June 14, 2023, https://www.esi-africa.com/east-

africa/kenya-making-great-strides-to-become-africas-electric-vehicle-hub/.

153 ESI Africa, “Kenya making great strides to become Africa’s electric

vehicle hub”. Last modied June 14, 2023, https://www.esi-africa.com/east-

africa/kenya-making-great-strides-to-become-africas-electric-vehicle-hub/.

154 Page, “Opibus: The mobility startup converting Kenya to electric

vehicles”. Altered June 14, 2023, https://edition.cnn.com/2022/03/01/

africa/opibus-kenya-electric-mobility-bus-motorcycle-car-spc-intl/index.

html

155 Kuhudzai, “Opibus scaling electric vehicle conversions for mass

transit vehicles to make electric mobility more accessible in Africa”. Last

modied June 14, 2023, https://cleantechnica.com/2021/03/01/opibus-

scaling-electric-vehicle-conversions-for-mass-transit-vehicles-to-make-

electric-mobility-more-accessible-in-africa/

156 Kuhudzai, “Opibus scaling electric vehicle conversions for mass

transit vehicles to make electric mobility more accessible in Africa”. Last

modied June 14, 2023, https://cleantechnica.com/2021/03/01/opibus-

scaling-electric-vehicle-conversions-for-mass-transit-vehicles-to-make-

electric-mobility-more-accessible-in-africa

157 Kirago, Gatari, Gustafsson, Andersson, “Black carbon emissions from

trafc contribute substantially to air pollution in Nairobi, Kenya”

coming from this origin

158

- and lack of air quality or emission

standards

159

. Stricter standards are necessary on vehicle

importations and GHG and AP emissions, but the available

second-hand vehicles already in circulation in Kenya possess

the ideal conditions for EV conversion

160

Roam’s market strategy for EV conversion not only utilizes

the already-existing second-hand four-wheeler eet and

the safari and tourism sectors but also emphasizes using

most of the retrotting components from local sources

161

The company reports incorporating at least 35% of the

components necessary for the conversion from local

sources and productions and envisions battery production

in-country to lower the retrotting prices further

162

. This

measure contributes to the development of a domestic value

chainthat supports future EV initiatives in Kenya.

After Roam’s inception in the market, other companies have

arisen and are expanding EV conversion as a viable solution

for ICE vehicles in the country. Kenya’s sole power supplier,

Kenya Power, for example, has announced plans to convert

over 2,000 vehicles from ICE to EV in the next four years

163

Other companies, such as Knights Energy, have received

approval from the Kenya Bureau of Standards (Kebs) to

convert vans and buses into hybrid and electric vehicles in

the country

164

. Despite existing challenges

165

, domestic and

international factors are highly favorable to the expansion

of the Kenyan EV retrotting market to Africa. Public and

private stakeholders are addressing the barriers through

158 UNEP, “Used vehicles and the environment: A global overview of

used LDVs”.

159 UNEP, “Used vehicles and the environment: A global overview of

used LDVs”.

160 Roam Electric, “About”. Last modied June 14, 2023. https://www.

roam-electric.com/about

161 Kuhudzai, “Opibus scaling electric vehicle conversions for mass

transit vehicles to make electric mobility more accessible in Africa”. Last

modied June 14, 2023, https://cleantechnica.com/2021/03/01/opibus-

scaling-electric-vehicle-conversions-for-mass-transit-vehicles-to-make-

electric-mobility-more-accessible-in-africa

162 Kuhudzai, “Opibus scaling electric vehicle conversions for mass

transit vehicles to make electric mobility more accessible in Africa”. Last

modied June 14, 2023, https://cleantechnica.com/2021/03/01/opibus-

scaling-electric-vehicle-conversions-for-mass-transit-vehicles-to-make-

electric-mobility-more-accessible-in-africa

163 ESI Africa, “Kenya making great strides to become Africa’s electric

vehicle hub”. Last modied June 14, 2023, https://www.esi-africa.com/east-

africa/kenya-making-great-strides-to-become-africas-electric-vehicle-hub/.

164 Kariuki, “Kebs licenses electric vehicles conversion companies”.

Last modied June 14, 2023, https://www.businessdailyafrica.com/

bd/markets/market-news/kebs-licenses-electric-vehicles-conversion-

companies--2459954

165 Page, “Opibus: The mobility startup converting Kenya to electric

vehicles”. Altered June 14, 2023, https://edition.cnn.com/2022/03/01/

africa/opibus-kenya-electric-mobility-bus-motorcycle-car-spc-intl/index.

html, ESI Africa, “Kenya making great strides to become Africa’s electric

vehicle hub”. Last modied June 14, 2023, https://www.esi-africa.com/east-

africa/kenya-making-great-strides-to-become-africas-electric-vehicle-hub/

Electric Vehicle Retrotting: A Guide to Policy-Making

policy and market instruments to ensure the continued

success of this venture.

Figure 10: Last installations of electric conversion system at

Roam Electric

166

5.6. SRI LANKA

The electrication of Sri Lanka’s transportation system

is strategic for the country’s economy and environment.

Heavily reliant on oil importations, Sri Lankan transportation

is estimated to be the most polluting sector in the country

167

using around 70% of Sri Lanka’s total oil consumption

168

This trend reects an acute increase of two- and three-

wheelers’ registrations in the country for the past two

decades

169

. These modes of transportation are often highly

polluting due to either outdated or poorly maintained

combustion systems

170

In addition to the related environmental constraints it

presents, oil importations generate a considerable constraint

to Sri Lanka’s economy

171

. Despite petroleum being the main

its energy source, the country is not a producer of fossil

fuel resources

172

. Sri Lanka’s energy systems are heavily

dependent on imported oil, with demand coming especially

from its transportation sector. The increased demand for

166 Roam Electric, “6 Benets of converting your vehicle to electric”. Last

modied June 20, 2023, https://www.roam-electric.com/post/6-benets-

of-converting-your-vehicle-to-electric

167 US Embassy Colombo, “U.S. partners with David Pieris Motor

Company to boost electric mobility in Sri Lanka”. Last modified June 26,

2023, https://lk.usembassy.gov/u-s-partners-with-david-pieris-motor-

company-to-boost-electric-mobility-in-sri-lanka/

168 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

169 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

170 SL Mobility, “Vision & Mission”. Last modied June 26, 2023, https://

www.slmobility.com/about/vision-&-mission

171 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

172 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

gasoline and diesel is one of the major factors that negatively

affect Sri Lanka’s economy

173

, as the government directs

many of its import bills on the acquirement of petroleum-

derived products

174

High oil-importation demands devalued the Sri Lankan

currency and led to a petroleum supply crisis in 2022,

resulting in the banishment of vehicle imports to the

country

175

. The economic crisis particularly impacted three-

wheeler’s owners and drivers. Tuk-tuks, as three-wheelers

are commonly known in Sri Lanka, are mainly used in urban

centers for self-employment, contributing to the informal

economy and transportation of the Sri Lankan population

176

Without the means of refueling their vehicles and of

importing new versions, half a million people have reportedly

lost their income activity during 2022, exacerbating the

country’s dependency on oil importation

177

Within this context, EV conversion has gained popularity

as a viable mobility opportunity in Sri Lanka. The solution

provides the opportunity for the government to achieve its

NDC targets and goals

178

, contributing to GHG mitigation

and air quality levels. Electrication of three-wheelers has

particularly caught attention of domestic and international

stakeholders. Coming behind motorcycles as the most

popular registered vehicles in the country

179

, tuk-tuks’

expansion rate amongst user has increased over 12-fold

in the last decade

180

. As most tuk-tuks in Sri Lanka are ICE

models imported from India

181

, start-ups and small-scale

mechanics have started exploring EV retrotting in the past

decade, developing simple and affordable conversion kits to

attract potential consumers

182

With the recent economic crisis and with the oil and

ICE vehicles importations’ ban

183

, tuk-tuk conversion

173 Top Car News, “Sri Lanka to electrify 500,000 tuk-tuks”. Last

modied June 26, 2023, https://topcarnews.net/sri-lanka-to-electrify-

500000-tuk-tuks-s244513.html

174 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

175 Top Car News, “Sri Lanka to electrify 500,000 tuk-tuks”. Last

modied June 26, 2023, https://topcarnews.net/sri-lanka-to-electrify-

500000-tuk-tuks-s244513.html

176 SL Mobility, “Vision & Mission”. Last modied June 26, 2023, https://

www.slmobility.com/about/vision-&-mission

177 Top Car News, “Sri Lanka to electrify 500,000 tuk-tuks”. Last

modied June 26, 2023, https://topcarnews.net/sri-lanka-to-electrify-

500000-tuk-tuks-s244513.html

178 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

179 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

180 SL Mobility, “Vision & Mission”. Last modied June 26, 2023, https://

www.slmobility.com/about/vision-&-mission

181 UNEP, “Taming the sputtering tuk tuk: Sri Lankan innovator develops

affordable electric conversion kit”. Last modied June 26, 2023, https://

www.unep.org/pt-br/node/24335

182 UNEP, “Taming the sputtering tuk tuk: Sri Lankan innovator develops

affordable electric conversion kit”. Last modied June 26, 2023, https://

www.unep.org/pt-br/node/24335

183 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

Electric Vehicle Retrotting: A Guide to Policy-Making

gained a larger interest from the Sri Lankan government.

Partnerships and technical exchanges with foreign

donors have recently been established to assist in tuk-tuk

conversion

184

and on the establishment of more advanced

charging facilities for the new EVs in the streets

185

Recognizing the strategic opportunities of tuk-tuk

conversion, the Sri Lankan government aims to facilitate

the conversion of half a million vehicles in the next ve

years, hoping to mitigate air pollution in urban centers and

to revive micro- and informal economic activities in the

country

186

Challenges remain on the road for electrication of the Sri Lankan

transportation eet. Mainly, charging infrastructures in the country

continue to present a challenge to current EV owners

187

, and

energy systems must be decarbonized to support EV expansion

188

However, the recognition of the strategic role tuk-tuks have in the

country’s economy and transportation is a key factor for future

environmentally friendly ventures

189

, and further investments in

technical know-how are essential for driving domestically led EV

conversion efforts in the country.

Figure 11: CEO of SL Mobility posing next to converted

three-wheeler

190

184 Hamza, “Sri Lanka partners with USAID to convert petrol-run

tuktuks to electricity”. Last modied June 26, 2023, https://economynext.

com/sri-lanka-partners-with-usaid-to-convert-petrol-run-tuktuks-to-

electricity-98704/

185 US Embassy Colombo, “U.S. partners with David Pieris Motor

Company to boost electric mobility in Sri Lanka”. Last modied June 26,

2023, https://lk.usembassy.gov/u-s-partners-with-david-pieris-motor-

company-to-boost-electric-mobility-in-sri-lanka/

186 Top Car News, “Sri Lanka to electrify 500,000 tuk-tuks”. Last

modied June 26, 2023, https://topcarnews.net/sri-lanka-to-electrify-

500000-tuk-tuks-s244513.html

187 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

188 Sugathapala, “Assessment of skills and knowledge gap in energy

efciency within the transport sector in Sri Lanka”

189 UNEP, “Taming the sputtering tuk tuk: Sri Lankan innovator develops

affordable electric conversion kit”. Last modied June 26, 2023, https://

www.unep.org/pt-br/node/24335

190 UNEP, “Taming the sputtering tuk tuk: Sri Lankan innovator develops

affordable electric conversion kit”. Last modied June 26, 2023, https://

www.unep.org/pt-br/node/24335

Electric Vehicle Retrotting: A Guide to Policy-Making

6.1. CONCLUSION

With many countries taking active measures to transition

their transportation systems from ICEs to electric

vehicles, the inclusion of EV retrotting within their

strategies creates the possibility of further accessibility

of transportation electrication to the population. The

simplicity of the technology, the opportunities made

available through decarbonization efforts within the EV

agenda, and the positive initial experiences presented by

some countries highlight the potential expansion of EV

retrotting technology. While the EV market is still in its

initial stages, it can grow signicantly when integrated into

national strategies.

Many countries have employed different policy measures

to accelerate the adoption of EVs by the population

but do not explicitly include retrotted vehicles in their

strategies. As an emerging global industry still in its initial

phase, EV retrotting requires technical regulations and

safety guidelines for its growth and popularization among

customers. Developing appropriate legislation for regulating

the process is not only important for the expansion of

6. CONCLUSION AND

RECOMMENDATIONS

the market but also for guaranteeing its safe practice.

Another area that requires specic policy involvement is

the continuous development of available models of the

retrotting kits through further R&D engagements.

191

Similarly, the EV retrotting market must also be included

in indirect strategies for transportation electrication

promotion. Misconceptions about the technology and

the retrotting process are common amongst potential

customers, who lack reliable information about the

retrotting kits and services available in the market

192

Investments in awareness campaigns and branding are

important for wider customer popularity.

While these policies are important for immediate EV

retrotting promotion strategies, they must be employed

with a broader and long-term strategy of charging

infrastructure promotion. The potential of EV retrotting

within a wider electrication agenda can promote a more

inclusive and exible transformation of the transportation

191 Transparency Market Research. “Automotive retrot electric

vehicle.”

192 Transparency Market Research. “Automotive retrot electric

vehicle.”

Electric Vehicle Retrotting: A Guide to Policy-Making

sector, reducing the cost barriers and contributing to

decarbonization efforts. Inclusive electrication policies of

different populational needs and leverage transportation

alternatives to customers of new and retrotted EVs are

crucial to promote true inclusion of the population within

electrication strategies.

6.2. RECOMMENDATIONS

The EV retrotting market can be directly beneted by

the promotion of decarbonization strategies and industry

innovations and can be further expanded by the adoption

of effective policies for the regulation and promotion

of the practice. With the potential of being a cheaper,

faster, and more adaptable alternative to purchasing new

EVs, retrotting is slowly being adopted by countries

as a complementary process to the electrication of

transportation systems. Given this circumstance, this

report proposes the following recommendations:

RECOMMENDATION 1: Establishment of EV conversion–

specic technical legislation

With the growth of EV retrotting kits available to the

public, countries must prioritize specic legislation to

regulate and oversee the EV retrotting process. While

general guidelines for vehicular modications exist, the

process for EV retrotting directly affects the weight,

balancing, braking, suspension, and power generation of

vehicles. The adoption of an updated and robust regulation

scheme ensures the process’s reliability to the customer,

constituting an important rst step for the expansion of the

market.

Technical guidelines must be the comprehensive conversion

procedure, which include the safety requirements,

environmental regulations, and registration and insurance

certications. Additionally, the guidelines must be clear

on the homologation requirements of EV retrotting

kits, certication of qualied manufacturers, and

accreditation of specialized sellers and technicians for

installment. To accelerate the adoption of EV retrotting

as a complementary option for the electrication of

transportation, EV conversion must be comprehensively

and explicitly included in the country’s vehicular legislator

system, enabling its monitoring and regulation.

RECOMMENDATION 2: Inclusion of EV retrots in

existing EV incentives

As countries strive to transition their transportation

systems towards decarbonization, electrication is a

popular alternative for many. While it may be argued that

EV retrots can be automatically classied as EVs and,

consequently, be given the same incentives granted to new

EVs, an explicit inclusion of converted vehicles is essential

for a truthful adoption of retrotting as an electrication

strategy.

Direct incentives for EV retrotting may facilitate awareness

and the initial popularization of the practice, allowing

customers to become familiarized with the practice and to

invest in an alternative to new EV acquisition—which might

not be nancially accessible to many. Additionally, permitting

converted vehicles to bypass carbon-zero or ICE-banned

zones can potentially democratize vehicle electrication and,

consequently, promote further awareness and acceptance of

the practice.

RECOMMENDATION 3: Investment in R&D, capacity-

building, and awareness campaigns

The EV market is still in its initial stages worldwide, and the

EV conversion market is no exception. Despite being an

affordable alternative to new EV acquisition, EV retrotting

faces the challenge of being model-specic, requiring

the development of a particular EV conversion kit for

each vehicle model. Thus, investments are necessary for

manufacturers, start-ups, and companies to continue to

develop new EV conversion kits, focusing on popular models

that have a wider range of customers.

Similar investments must be directed to the technicians

who perform the conversion. Given the safety risks that

exist in any vehicle modication, continuous capacity-

building is necessary to keep up with the fast-transforming

market. Additionally, awareness campaigns are necessary to

familiarize customers with the technology available for their

vehicles and the potential incentives and benets that are

connected to EV retrotting.

Electric Vehicle Retrotting: A Guide to Policy-Making

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Electric Vehicle Retrotting: A Guide to Policy-Making

APPENDIX: EV RETROFITTING

POLICIES BY GGGI MEMBER

A detailed look into each member’s EV retrotting policies divided between Technical Regulations, Incentive Measures,

and Environment Enabling Measures are as follows:

Technical Regulations

Australia

The National Guidelines for the Installation of Electric Drives in Motor Vehicles offers the general technical guidelines

for the conversion of ICEs into EVs. However, each jurisdiction must be consulted to certify that their procedures are

also being followed. Nationally, once the conversion is performed, a certied engineer must perform an assessment of

the vehicle to check if all safety systems are fully operational and that the brakes are working. A detailed report must

be submitted to the Department of Transport for review and approval, which will grant the vehicle authorization to be

registered as an EV.

Indonesia

2W conversion:

• Motorcycles that have been converted from ICE to electric must undergo inspection and approval from a spe-

cialized technician and receive the proper certication. The certication requires each vehicle to be tested and

approved by the specialized technician.

• After the certication is obtained, motorcycles must be registered as converted to the Transportation Ofcial.

Documents to be presented include the Vehicle Number Certication, the test report, a list of EV system instal-

lations, the Conversion Certicate, the technical drawings of the converted motorcycle, and any other require-

ments in accordance with the regulatory provisions legislation. After the procedure is completed, the applicant

must pay a registration fee.

Other motorized vehicles’ conversion:

• Conversions can only be performed by approved and registered technicians and certied mechanics. Every vehicle

must be individually tested and certied within the technical and road-worthy requirements. The responsible

technician and mechanics must directly apply for the certication and approval with the Indonesian National

Police. After application, every vehicle must be tested and receive approval.

• Converted vehicles are required to have periodic tests in addition to being proven by registration and identication.

Nepal

EV retrotting must receive verication from a responsible ofcer at the Transport Ofce.

Sri Lanka

Fuel conversion can be performed only after 3 years from the date of vehicle registration and before the vehicle is older

than 25 years of age. Prior approval for the conversion should be obtained from the Commissioner General of Motor

Trafc. A Vehicle Conversion approval must be requested, and, after the procedure, a Weight Certicate and a Fuel

Conversion of Vehicle Certicate must be obtained from the Department of Motor Trafc.

Electric Vehicle Retrotting: A Guide to Policy-Making

Registration:

• Under the Vehicle Excise and Registration Services act 1994, a vehicle converted from a petrol engine to an elec-

tric one must be then registered as an electric car. This is done by taking down the V5C registration document

and substituting it with the EV documents. Generally, any vehicle must be registered with the DVLA, which might

follow an in-person inspection.

Insurance:

• The insurance company must be notied of the EV conversion. Vehicle owners must obtain an insurance certi-

cate from their insurance company after providing the necessary paperwork for the conversion process.

Safety Certication:

• A crash performance test might be done by the DVLA to certify that the vehicle’s weight did not suffer consider-

able alterations during the conversion procedure compared to the registered weight on its VIN plate

Incentive Measures

Indonesia

2W Conversion Subsidy:

• Electric motorbike conversion assistance for the 2023 scal year is set at a maximum of 50,000 units of electric

motorbikes and for the 2024 budget it is set at 150,000 electric motorbikes. The size of the number of convertible

electric motors can be evaluated every year.

Nepal

Registration Fee Exemption:

• Environment-friendly and energy-efcient modications (including retrotting ICE vehicles into electric) have been

granted exemption of the 50% rate of the registration fee upon approval from the responsible ofcer from the verica-

tion of the vehicle after said alteration.

Tax Reductions:

• After being certied and accredited by the DVLA, EV converted cars less than 40 years old are eligible for EV tax re-

ductions.

Conversion Subsidies:

• The UK government have invested in several initiatives and public funds to support the conversion of government and

public eets to adapt to Clear Air Zones and mitigation targets. Funds include the Clean Bust Technology Fund, the

Clean Vehicle Technology Fund, the Clean Air Fund, and the Annual Air Quality Grant. While these incentives have

been signicant, they are not exclusive to EV conversion, and are mostly focused on converting old eets to t the

European Air Standards.

Environment Enabling Measures

Sri Lanka

International Cooperation:

• USAID + Pieris Motor Company 2022 MoU: Sri Lanka’s energy ministry has partnered with a local motor mechan-

ics company and USAID to convert three-wheelers run on petrol to electric three-wheelers. Under this partnership,

DPMC will convert internal combustion engine three-wheelers to electric three-wheelers and offer after sales ser-

vices through their island wide service centers. Meanwhile USAID will provide technical assistance to DPMC and es-

tablish a network of charging stations for three-wheelers.

Indonesia

R&D Investments:

• The Indonesian government has announced a deduction of up to 300 percent on research and development costs in

the elds of power generation, batteries, and power tools to promote lower prices of EV parts in the country

Electric Vehicle Retrotting: A Guide to Policy-Making

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