Here are 5 big changes set to happen in the Indian auto industry in the next few years
The global automotive industry is rapidly changing and the impact can be seen directly in India as well. In order to keep Indian auto industry in-line with global markets, Union Government has taken some harsh and necessary steps that are likely to completely change the Indian auto market. Here are 5 big changes likely to happen in the country in the next few years –
– BSVI emission norms
Union government has decided to directly adopt BSVI emission norms directly from the BSIV emission norms. The government has decided to skip the existing BSV emission, which will result into massive increase in prices of engines as well as cars and bikes. Roughly estimate is that the prices of cars will increase by up to Rs 2.5 lakh. In fact, the gap between petrol and diesel cars will also increase to Rs 2.5 – 3 lakh from the current 1 lakh. Also See – 90% Auto Sales In India Were Digitally Influenced in 2018
– Push for eco-friendly cars
Keeping challenges from global warming in mind, Union Government has announced to go all-electric by 2030. In fact, the government is giving tax sops on electric cars and promoting local development of lithium-ion batteries to keep curb cost. In fact, Suzuki has started local development of the lithium-ion battery at its new production plant in Gujarat.
The number of deaths due to road accidents in India is around 3 to 4 times that of European nations. In order to reduce road fatalities, Union Government has decided to introduce the Bharat New Vehicle Safety Assessment Program (BNVSAP). Cars to be sold in India from October 2019 will be assigned by star ratings based on their safety performance. The car testing protocols to follow in the crash test includes front offset testing, side impact testing, pedestrian protection testing, rear impact testing and child dummy dynamic crash testing. Also See – Car and Bike Modifications are illegal in India
– SUVs will lead the car sales
In recent times, the SUVs are gaining huge popularity in the market. Buyers are now ready to shed extra to drive home SUVs instead of sedans and hatchbacks. In fact, automakers are now planning to launch even micro SUVs based on the small car. India’s favorite hatchback, Alto is also expected to come a crossover-ish styling. In the next 2 years, India is expected to receive over 20 new SUVs.
– Diesel loosing grip
The narrowing gap between the petrol and diesel prices result into the rising demand for petrol cars in India. With BSVI emission norms coming in, the price gap between the petrol and diesel cars will further widen. Like we mentioned above, the gap between the petrol and diesel powered cars will increase up to Rs 2.5 – 3 lakh post April 2020. This clearly suggests that the petrol and eco-friendly cars will rule the Indian auto industry.