Auto makers seek ban on 15-year-old vehicles to cut pollution

Society of Indian Automobile Manufactures (SIAM), the Auto industry lobby of India, urged the government to put a ban on vehicles over 15 years old in the country to reduce pollution.

“Auto industry is doing a lot of work to reduce pollution. We are working to move to BS-VI emission norms. In order to reduce pollution, we request the government to ban vehicles which are 15 years old”, Siam president Vinod K. Dasari said. Speaking at the 57th SIAM Annual Convention, he urged the concerned authorities to help in the formation of a National Automotive Board, which will work as an advisory body to help government form policies.

According to Dasari, due to frequent changes in policies for the auto industry, the sector has been going through one of the most disruptive times. Every developed country has a strong automotive industry, hence India must work to strengthen its own since it accounts for almost 50 per cent of the country’s manufacturing GDP. With the proposed ban, the aim is to increase the “Make In India” program and uplift the sector by ensuring ease of business.

Dasari also appealed to the government to work towards making India a leader in electric vehicles by focusing not just on domestic markets, but also by tapping global ones.

Sources: NDTV, The LiveMint

Post-demonetisation auto sales plummet to 16-year low

Apart from the informal labour sector, if one industry is hit hard it must be the automobile sector. According to the latest data published by the Society of Indian Automobile Manufactures (SIAM), the December sales in domestic market stood at 1,221,929 units, 18.66% lower than December 2015 while exports suffered negative sales of 3.12%.

Small commercial utility vehicle remains the only segment to register growth at snail paced 1.15% at 31,178 units. The two-wheeler segment saw its biggest dip with 22.04% to 9,10,235 units since SIAM started collecting data in 1997. Rural India contributes to half of two-wheeler sales, which have been hit hard resulting to a record dip.

Vishnu Mathur, director general, SIAM, told reporters, “This is the highest decline across all categories since December 2000 when there was a drop of 21.81 percent in sales. The reason is largely due to the negative consumer sentiment in the market due to demonetisation.”

Domestic car sales also tanked down by 8.14% to 1,58,617 as against 1,72,671 units recorded last year at the same time, while ales of commercial vehicles were down 5.06 per cent at 53,966 units in December 2016.

This December witnessed the largest discounts on domestic sales but still failed to inspire buyers. The budget to be presented remains the only hope which could bring back buyers if some incentives are announced as a good monsoon and 7th pay commission pay rise have failed to wield magic.

Sources: The Hindu, Economic Times