Government of India has planned to ban scooters and motorcycles under 150cc by 2025. While it seems a very ambitious plan it is impractical wanna know why let us see.
Government has just baned BS-4 engine in October 2018 and caused a transition to BS-6 engine causing a heavy loss for companies as it was done in a hurry. Due to transition to BS-6 engine, the cost of vehicles has shot up and now this new rule. While having huge goals is good but one should think practically. Countries like the USA and China which are 10-15 years ahead of us are struggling to have all-electric vehicles fleet. By 2035 Volkswagen has announced that 50% of vehicles sold in China will be electrics. So that is 15.5 yrs from now and as of now only 3% of total vehicles of China is an electric vehicle. So the figures speak for themselves. Also, there are variant to E.V. and it is not like that, you have to choose between E.V. and petrol vehicles only, there are hybrids and mild hybrids which can be a target as it seems attainable. Government has just banned the BS-4 engine and now baning BS-6 engine will seem like the government is playing with auto manufacturers. Already declining sales of the automobile sectors is a headache for the Indian economy and this move will add fuel to the fire as people are already being conservative about buying new vehicles. This is due to the bad agricultural output because of which sales of 2 wheelers are already slumping in the rural sector along with the hold-up by the people for the new BS-6 engine availability in their favourite vehicle. Also, there is a good chance of recession hitting the global financial markets, with the yield curve becoming inverted all these factors will also add to the declining automobile sales. All in all, this new rule will affect the automobile industry much more negatively than positively and will be a bane rather than being a bane for the economy if implemented this early. As of now what this sector need is the incentive to increase consumer spending to reclaim the lost sales rather than a new policy which disincentivise the consumer to spend their money on a new vehicle be it 2 wheeler or 4 wheeler.
Government has just baned BS-4 engine in October 2018 and caused a transition to BS-6 engine causing a heavy loss for companies as it was done in a hurry. Due to transition to BS-6 engine, the cost of vehicles has shot up and now this new rule. While having huge goals is good but one should think practically. Countries like the USA and China which are 10-15 years ahead of us are struggling to have all-electric vehicles fleet. By 2035 Volkswagen has announced that 50% of vehicles sold in China will be electrics. So that is 15.5 yrs from now and as of now only 3% of total vehicles of China is an electric vehicle. So the figures speak for themselves. Also, there are variant to E.V. and it is not like that, you have to choose between E.V. and petrol vehicles only, there are hybrids and mild hybrids which can be a target as it seems attainable. Government has just banned the BS-4 engine and now baning BS-6 engine will seem like the government is playing with auto manufacturers. Already declining sales of the automobile sectors is a headache for the Indian economy and this move will add fuel to the fire as people are already being conservative about buying new vehicles. This is due to the bad agricultural output because of which sales of 2 wheelers are already slumping in the rural sector along with the hold-up by the people for the new BS-6 engine availability in their favourite vehicle. Also, there is a good chance of recession hitting the global financial markets, with the yield curve becoming inverted all these factors will also add to the declining automobile sales. All in all, this new rule will affect the automobile industry much more negatively than positively and will be a bane rather than being a bane for the economy if implemented this early. As of now what this sector need is the incentive to increase consumer spending to reclaim the lost sales rather than a new policy which disincentivise the consumer to spend their money on a new vehicle be it 2 wheeler or 4 wheeler.
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