The ban issued last month has brought a dramatic decline in sales in Assam causing heavy losses not only to car manufacturers and dealers but the district transport office as well.
Things haven’t been too bright for automotive dealers in Assam that have been struggling to churn out sales after the ban was levied by the Gauhati high court on the sales of sub-1500 kg passenger vehicles. For the previous month, the state capital of Guwahati saw a stark dip of 60 percent in sales. The interim ban was levied after three petitioners sought a PIL with the Gauhati High Court asking the court to ban sub-1500 kg passenger vehicles that do not meet the Euro NCAP safety norms.
The petitioners argued that given the dangerous and demanding terrain of the mountainous region, vehicles sold in the state needed to have higher safety standards which most of the small cars lack altogether. The ban saw dealerships holding back all deliveries for the month and had to also stop accepting bookings for new models since they did not meet the Global NCAP safety norms.
The ban affected 16 auto manufacturers and a plethora of small vehicles including the Maruti Swift, Alto and Celerio; Hyundai i10 and Eon, and even cars like the Honda Brio and Jazz. However, SIAM was quick to come into action and challenged the High Court’s decision late last month stating that the ban could not be levied since the vehicles sold in the country meet safety norms set by the Indian Bureau of Standards. Since the Euro NCAP safety norms do not apply on Indian soil, the same could not be a reason to legislate the ban. The Indian government’s new safety standards will be implemented only by 2017
