Urban mobility in India is evolving rapidly under the pressures of population growth, increasing congestion, and the demand for innovative transportation solutions. With infrastructure development and urbanization accelerating, there is a growing need for versatile vehicles that can adapt to both personal and commercial purposes while addressing urban vehicle density. To meet this demand, the 2-3 Wheel Combi Vehicle has emerged as a groundbreaking modular mobility solution, enabling seamless transitions between two-wheeled (2W) and three-wheeled (3W) configurations. This is world's 1st class changing vehicle, exemplified by Hero's SURGE. It offers a single, multi-functional platform that supports agile urban mobility, e-commerce deliveries, and income generation. This innovation is underpinned by India's pioneering and newly created L2-5 category, a unique regulatory framework established by the Ministry of Road Transport & Highways (MoRTH) under the Central Motor Vehicle Rules (CMVR). Prior to this, vehicles were subject to standard CMVR requirements for 2W and 3W, but the modular nature of the 2-3W Combi Vehicle necessitated a tailored governance architecture to ensure safety, functionality, and viability. Drawing inspiration from international best practices, the L2-5 category was developed through collaboration between government bodies (MoRTH, ARAI/ICAT), industry stakeholders (SIAM), and safety experts. The L2-5 framework mandates rigorous type approval protocols vide newly formulated automotive industry standard AIS-177 formulated through a phased approach with pilot testing and stakeholder input, this category balances innovation with practical implementation. It also harmonizes taxation and insurance, while integrating seamlessly with the VAHAN system at the Regional Transport Office (RTO) level for streamlined registration and dual-configuration. By combining versatility, safety, and regulatory foresight, the 2-3W Combi Vehicle sets a new benchmark for sustainable urban mobility in India. It represents a forward-looking shift toward adaptive transportation systems that address economic utility, reduced congestion, and modular design, aligning with global trends in innovative mobility solutions.