Due to a recent slowdown in the industry, the government has decided to ease the push towards EVs.
The recent slowdown in sales in the automobile industry is a topic which is being widely discussed nowadays by the media and the industry. Currently, the auto sector is witnessing the sharpest decline in sales in the past 18 years. The government has finally decided to address the issue.
The automobile industry has highlighted the recent push towards electric vehicles by the government as a major cause of the slowdown. The government has made note of this factor and has decided to ease the pressure on the industry for electric mobility. Even the government’s plan for a complete ban on internal combustion engine (ICE) 3-wheelers and 2-wheelers (up to 150cc) is not being enforced aggressively.
The government now believes that the way to go is to gradually increase the EV share in sales rather than disturbing the market abruptly. The road transport minister had issued a draft notification of a proposal to increase the registration charges for ICE vehicles form the current Rs. 600/- to Rs. 5000/-. This push for an increase in registration charges has intimidated buyers. The proposal has now been put on hold.
Amid all this, the Society of Indian Automobile Manufacturers (SIAM) has requested the government to allow the registration of BS4 compliant vehicles post 1st April 2020. This is to allow the manufacturers to clear their inventory. Though, making a learned guess we can safely assume that this proposal might not go through as it was earlier turned down by the Supreme Court as well.
Auto Industry Slowdown
– The government has decided to ease pressure on the industry for electric mobility
– Policies to discourage sales of ICE vehicles have been put on hold
– SIAM has requested to allow registration of BS4 vehicles post 1st April 2020
Source – ETAuto.com