The Society of Indian Automobile Manufacturers (SIAM) has showed its concern over the government’s proposal of increasing registration charges on new vehicles by 10 to 20 times, depending upon the vehicle category. The apex body of Indian automobile industry said that the decision will “further aggravate the market condition negatively”.
The draft notification issued by Ministry of Road Transport & Highways (MoRT&H) proposes that the registration charges on new medium goods and passenger vehicles will be increased by a minimum of Rs 1,000 to a maximum of Rs 20,000. Read – Government Might Make Nitrogen-Filled Tyres Compulsory
The new commercial vehicles such as buses and trucks will attract a registration fee of Rs 20,000 instead of Rs 1,500. Similarly, the registration charge for the new bikes and scooters will be raised to Rs 1,000 from Rs 50. A new car will be registered at Rs 5,000 instead of the current charges of Rs 600.
SIAM suggests that the Indian government should first consider the implementation of various measures suggested by SIAM to stimulate growth of automotive industry instead of increasing registration charges for new vehicles. Read – Top 5 New Cars Launching Between August-December 2019
It’s the ninth consecutive month, the Indian automobile industry has been witnessing a de-growth. In such times of crises, the hike in vehicle registration fees will certainly discourage buyers from purchasing new vehicles. Most of the car manufacturers have already increased prices of their entire range due to new safety norms and high input costs. It will further shoot up with the implementation of the BS6 (Bharat Stage VI) emission norms from 1st April, 2020.