It is no secret that diesel passenger vehicles future appears bleak in our market. From 55-57% shares in 2012, the diesel market share PV sales dropped to 18% in 2021-11. The sales are expected to further decrease as diesel PV consumer sentiment at all-time low. Now, the Energy Transition Advisory Committee (ETAC) from the Petroleum Ministry has submitted a report that proposes a ban on all diesel cars & other 4-wheelers in cities with more than 1 million population by 2027.
The Key Recommendations By ETAC
– Ban on diesel cars & 4 wheelers in cities with a population over 1 million by 2027.
– Use of CNG for the next 10-15 years before completely switching towards electric vehicles or EVs
– Government could promote flex-fuel & hybrid vehicles in short & medium terms
– Electric & ethanol blended petrol will be used for passenger cars & taxis instead of diesel
– No diesel Buses for public transport to be added in urban areas from 2024 onwards
– By 2030, only new electric buses will be introduced
– Intercity public transport buses should be offered with CNG/LNG or electric powertrain with swappable battery technology
– For city cargo or delivery vehicles – from 2024 new registrations should only be electric so that 75% of the delivery vehicles in million-plus cities will become electric
– ICE powered 2 & 3-wheelers should be banned by 2035 & EVs should be promoted as a replacement.
– Before complete switch to greener technology, for intercity buses government should promote use of CNG or LNG & CBG (Compressed Biogas).
– The committee recommended Petroleum Ministry to promote LNG-based transport in the LCV & HCV segments
– Railway should play a major role in cargo transport – the current stake of 23% should be increased by over 50%.
What Petroleum Ministry Says
The government hasn’t take a decision on accepting the Energy Transition Advisory Committe report’s recommendation on ban on diesel powered vehicles in big cities by 2027. The Ministry of Petroleum & Natural Gas (MOPNG) said that “the government of India is yet to accept ETAC Report.”
“The suggestions of ETAC relate to multiple ministries & a range of stakeholders including states. Consultations with various stakeholders on the #report are yet to be initiated. ETAC has made wide ranging & forward-looking recommendations for shift to Low Carbon Energy. ETAC has a futuristic outlook.”
Should You Buy Diesel Cars or ICE 2Wheelers?
If you love diesel cars & are ready to take a hit in after sales, you can buy a new diesel car as the diesel fuel will continue to be available at the fuel pumps. We would suggest you to opt for alternate fuels like strong hybrids. In the next couple of years, a wide range of strong hybrid vehicles with high fuel efficiency will be launched in our market. For 2 wheeler commuters, we suggest you to go for EVs instead of petrol powered vehicles.
