No Plan To Ban Petrol And Diesel Vehicles In India: Gadkari

Sep 5, 2019
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2 min read

Auto industry lays down its recommendations to the government to escape the slowdown in SIAM’s 59th Annual Convention

The 59th SIAM Annual Convention is being held in New Delhi.
SIAM has put forth various recommendations to improve the current automotive scenario.
Road and Transport Minister Nitin Gadkari has also addressed the gathering with some interesting announcements.
A reduction in the GST for automobiles in one of the key recommendations.

Indian automotive manufacturers had an opportunity to express their concerns and recommendations to the Indian Government at the 59th SIAM Annual Conference held in the National Capital on 5th September. SIAM put forward various pointers that the industry would benefit from. Mr Nitin Gadkari, Minister of Road Transport and Highways of India, also made some interesting announcements that is bound to uplift the current setting and boost optimism.

The most crucial of them was the Minister's announcement of no plans to ban petrol or diesel vehicles in the near future. Given the current situation of banks and the difficulty in acquiring loans, the minister also added that automotive manufacturers should set up their own financial institutions to boost financing for the private vehicle industry. More significantly, the minister has acknowledged the industry’s demand for GST reduction and said that he will take the request up with the finance ministry.

Road and Transport Minister Nitin Gadkari's announcements came after SIAM shared its recommendations to boost sentiment.
Mr Rajan Wadhera, President of SIAM India, came forward with various recommendations to the Indian government that might be paramount for the future of Indian automotive industry. These include:

Recommendation to reduce the GST levied on auto industry from 28 per cent to 18 per cent.
Availability of BS6 fuels starting from February 2020.
Dedicated government agency for notifying automotive guidelines.
Removal of the restrictions on diesel sales post BS6 implementation.

Various carmakers have added that the demand for vehicles will stay flat unless there is some reduction in the current rate of GST. SIAM’s recommendation for a cut in the GST rate and the ease of restrictions on diesel sales post BS6 could improve the dwindling sales numbers. Also, the availability of BS6 fuels before February 2020 (2 months prior to the implementation of BS6) would help the current and existing BS6 cars to run cleaner.

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The dedicated government agency to plan and provide guidelines to the auto industry would be a welcome addition as well as it will help develop a solid roadmap for the induction of EVs and phasing out older IC engine vehicles. Also, it will have a better understanding of the industry and how it works, thereby resulting in a win-win situation for both the industry and the government.

All in all, SIAM’s recommendations and Gadkari’s announcements seem hopeful to say the least. It remains to be seen how these recommendations play out in terms of real-world policies in the future.

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Vikram | 4 years ago @ dhiman | Yes sir you are right Human Greed to perpetually grow is unsustainable. We cannot simply Keep on having a financial growth model for any and all sectors without dis balancing nature and its resources. At the end of the day , we need to harness Solar And other naturally renewable sources to live harmoniously and sustainably. We cannot simply pollute our way to glory and expect more trees to take care of it! ...Read More 1 Reply

Michael | 4 years ago If the goverment start planting trees instead of banning petrol n diesel cars like developed countries it would nt impact the environment n auto sector 0 Reply

dhiman | 4 years ago @ Honest | Why should petrol and diesel vehicles be banned when there are no proper facilities yet? Also the most polluted cities have not changed their status even with the introduction of CNG engines, so changing vehicles and engines wouldn't matter. What should change is the mentality of people, not vehicles or anything. Petrol and diesel vehicles are already used in many countries but they know how to maintain the balance with nature because of civic sense and cleanliness. Indian public cares less about cleanliness and has been producing so much factories outside the pollution norms, causing deforestation to build cities but nobody says anything about that. The ones living in green areas are still surviving with much greenery and nature but the ones living in cities consider the ones living with nature to be uncivilized whilst being uncivilized themselves and destroying nature. Mentality should change first before changing anything. ...Read More Yes sir you are right 2 Reply

dhiman | 4 years ago 1997 model four wheeler and two wheeler are still running on road in india govrment need to bond all those vechile and that will help for environment 0 Reply

Parveen choudhary | 4 years ago Hope the Government will also look into the possible solutions of 10 -15years old vehicles ban in Delhi NCR.It is unjust to people who maintain their vehicles 1 Reply

Honest | 4 years ago Why should petrol and diesel vehicles be banned when there are no proper facilities yet? Also the most polluted cities have not changed their status even with the introduction of CNG engines, so changing vehicles and engines wouldn't matter. What should change is the mentality of people, not vehicles or anything. Petrol and diesel vehicles are already used in many countries but they know how to maintain the balance with nature because of civic sense and cleanliness. Indian public cares less about cleanliness and has been producing so much factories outside the pollution norms, causing deforestation to build cities but nobody says anything about that. The ones living in green areas are still surviving with much greenery and nature but the ones living in cities consider the ones living with nature to be uncivilized whilst being uncivilized themselves and destroying nature. Mentality should change first before changing anything. ...Read More 6 Reply

Sanskriti | 4 years ago CNG vehicles must for all car manufacturers 2 Reply