The government appears to have taken cognizance of the slowdown pain the industry is going through
The Indian automotive industry is passing through a tricky phase with sales of various vehicle segments touching an all-time low. The woes of the industry have been further compounded by the government's keenness to ban the sale of internal combustion engine (ICE) three-wheelers after 2023 and two-wheelers of engine capacity up to 150cc and fast-forwarding the electric vehicle (EV) journey.
But it seems that realisation has dawned on the government that the auto industry is grappling with an unprecendented slowdown. The government has clearly taken cognizance of the prevailing slowdown and if highly-placed sources are anything to go by, the government is likely to walk down the 'go slow' path as as far electric vehicles are concerned at least for the next few months.
It does not need any emphasizing that the auto industry desperately needed that kind of support as fast-forwarding electric vehicles would have severely impact already reeling automotive companies. It is also learnt that the government was in never in favour on slapping a blanker ban on sale of internal combustion engine (ICE) three-wheelers after 2023 and two-wheelers of engine capacity up to 150cc and was only mulling a rapid adoption of EVs.
The auto industry has been highly critical on media reports suggesting that the government is mulling a ban on sale of internal combustion engine (ICE) three-wheelers after 2023 and two-wheelers of engine capacity up to 150cc.
Further, there is a line of thought in the government that there need of the hour is to adopt a steadier approach to enhance the share of electric vehicles and refrain from causing any kind of disruption in the auto sector, which is a significant contributor to the country's GDP and employment.
The plight in which the Indian automotive industry is at present, it seems has prompted the government not to undertake any measures that discourage sale of ICE vehicles.
Clearly, it appears to be a prudent move by the government to factor in the 'bigger industry picture' and act accordingly.