The proposed hike in the vehicle registration fee will further deter the growth of the auto industry: SIAM

 Mr Rajan Wadhera, President of SIAM, says, 'Such an increase in the registration charges of new vehicles would further aggravate the market condition.'

The Indian automotive industry, struggling with a bizarre slowdown, received a bit of respite, thanks to the Government's decision to reduce the GST rates on EVs and associated peripherals. The move, if not for the entire industry, was certainly a positive one for greater adoption of EVs in the country. However, the recent notification issued by the Ministry of Road Transport & Highways (MoRTH) regarding a huge hike in the registration charges of all classes of vehicles (Commercial & Passenger) has once again created a gloomy atmosphere for the Indian automotive industry. Based on popular sentiment, no vehicle manufacturer in the country seems to be in favour of the proposed hike.

Therefore, on behalf of the entire industry, the Society of Indian Automobile Manufacturers (SIAM) has expressed serious concern regarding this move. To give the readers an idea about the severity of the situation, here's a quick look at the revised charges for new vehicle registration & vehicle registration renewal:

At present, a new Medium Goods/Passenger Vehicle costs ₹ 1,000 to register, while the current registration charges for a new car (Light Motor Vehicle Non-Transport) and a new motorcycle (Two-Wheeler) are ₹ 600 and ₹ 50, respectively. Thus, when an already slow industry is grappling with issues of piling inventories, this kind of a hike will further deteriorate the situation. To make matters more challenging, there's also the BS-VI implementation deadline of April 2020 looming over the heads of vehicle manufacturers, which has only increased the pressure to get rid of the existing BS-IV stock.

Therefore, SIAM has suggested the Indian Government to first implement the necessary measures to revive the auto industry's growth & consumer demand and then move on to its plan to promote the uptake of EVs in the country.

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