Search Results for: india-policy-scrap-15-yrs-old-vehicles-almost-finalised-nitin-gadkari

2021-04-25

India Government Announces Scrappage Policy

Aditya Kondejkar

The central government in mid-April announced its long-awaited vehicle scrappage policy. Under the new policy, in case of failure to get a fitness certificate, commercial vehicles will be de-registered after 15 years. Private vehicles will be de-registered after 20 years if found unfit or in case of a failure to renew registration certificates

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There are approximately 50 lakh vehicles in India that are older than 20 years, approximately 35 lakh vehicles older than 15 years, and approximately 15 lakh older than 15 years without renewed fitness certificate.

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2022-06-25

India Amends Bio-Fuel Policy, Hikes Introduction of E20

INDIA REPORT 

Aditya Kondejkar

The government of India has amended its National Policy on Bio-fuels that will accelerate the adoption of E20, allow the use of new bio-fuel feedstocks, and grant permission for bio-fuel exports under certain conditions. 

Source: Ethanol Producer Magazine     Read The Article

PSR Analysis: To tackle soaring fuel oil prices, India plans to introduce 20% ethanol blending with gasoline in several regions of the county beginning in April 2023, and it will be implemented nationwide starting in FY25. The Indian government has expediated the process to increase local oil production and the transition to alternative fuels to reduce the dependencies on other countries. Currently, India is using a 10% mixture of ethanol and gasoline.

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2021-08-22

PM Launches Vehicle Scrappage Policy

Aditya Kondejkar

Vehicles will not just be scrapped by their age, but also if they are found to be unfit in automated testing. The vehicle scrappage policy will bring in investments of around INR 10,000 crore to set up 450-500 Automated Testing Stations (ATS) and 60-70 Registered Vehicle Scrapping Facilities (RVSF) across the country.

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PSR Analysis: Under the Voluntary Vehicle-Fleet Modernization program (VVMP), the government plans to set up between 450-500 automated vehicle fitness testing stations across India on a public-private partnership (PPP) basis involving private firms and state governments. A total of 60-70 vehicle scrapping centers will also be built; these stations will be situated no further than 150-200 kilometers away from any location in India. A total of seven agencies – including Tata Motors – have signed a Memorandum of Understanding (MoU) with the government today for this project. Tata Motors’ vehicle scrapping center will be set up in Gujarat, will scrap both passenger and commercial vehicles and will have the capacity to recycle up to 36,000 vehicles a year.

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2021-10-24

Subsidy Program for Scrapping Diesel Vehicles Ineffective

FAR EAST: SOUTH KOREA REPORT

About half of those who received South Korean government aid to scrap their old diesel vehicles early have purchased diesel vehicles again, according to a new study. The government spent 845.4 billion won (about 79.6 billion yen) in the last five years (2016-2020) to scrap 959,000 aging diesel vehicles, but the number of all diesel vehicles increased by 9% during the same period. The government has pointed out that diesel vehicles are the main culprit of particulate matter such as PM2.5 and has implemented a policy to “eliminate” them, but this policy has not been effective.

There is subsidy support if old diesel cars are scrapped depending on the level of emissions in operation. In addition, there are additional subsidies if you buy an eco-car or a gasoline/LPG car.

If old diesel vehicles with a gross weight of less than 3.5 tons are scrapped early, they can receive up to 6 million won (about 570,000 yen) in subsidies. According to data from the Ministry of the Environment, 48,757 people in the Seoul metropolitan area purchased new cars in the first half of last year after receiving subsidies to scrap their old diesel vehicles. However, of the cars purchased by these people, 21,686 (44%) were diesel vehicles. Moreover, 15,990 of them were used diesel cars, 2.8 times more than the number of new cars (5,696).

Source: Chosun Online

PSR Analysis: It is hard to say that this is a flaw in the system, but the reality is that this system has not achieved its purpose and has produced the opposite effect. The reason for this situation is simple: many of the users of trucks under 3.5 tons are small businesses, and considering their expenses, they do not choose gasoline vehicles, and new vehicles are not an option, so they choose used diesel vehicles.

EVs and fuel cell vehicles, which are now being widely reported, are attracting attention as vehicles equipped with next-generation technologies. However, especially in the case of commercial vehicles, the high initial cost is frowned upon. The market should take another look at the fact that inexpensive vehicles that can easily demonstrate their contribution to business will be selected. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

2021-03-20

Beijing Accelerates “Fuel for Battery” Policy

Qin Fen
Qin Fen

The Beijing Municipal Commission of Transport in February issued an action plan describing how to switch out IC-powered light commercial vehicles in urban areas.

The city government will subsidize fleet companies switching out 20 gasoline or diesel powered vehicles to battery-powered cargo vehicles one time before Aug. 31, 2021.  The government will issue city passes to fleet companies on more favorable terms than ICE powered cargo vehicles.

There will be a government transportation center to monitor every battery-powered vehicle on operating range, GPS, etc., in case someone embezzles government subsidy.

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2020-09-27

Regulatory Changes Could Boost India Auto Industry

India’s auto industry has slid back to the level of nearly a decade ago due to multiple regulatory changes, a slowing economy, liquidity issues, and the COVID-19 pandemic.

Aditya Kondejkar

The auto industry has shown signs of recovery over the last couple of months; however, an additional demand push is required to generate sustainable growth. The government is evaluating a series of possible measures such as a revision in the goods and services tax (GST) rate and a production-linked incentive and scrapage policy.

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GST Revision: The GST council is evaluating an industry 10% GST cut across categories of vehicles.

This GST revision will defiantly neutralize the impact of the price hike due to BS-VI upgradation. Further, this GST revision will give a strong thrust to auto sales during the coming festive seasons. 

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Product Definitions Guide

Product Descriptions by Segment and Application Power Systems Research tracks some 250 products in 13 major industrial segments. This Guide defines each product that PSR lists in its proprietary databases. Segment: Agriculture Application: 2-Wheel Tractors 2-Wheel Tractors Application: Ag Tractors 2-Wheel Drive Tractors 4WD Articulated Ag Tractors MFWD Tractors (Mechanical Front Wheel Drive) Tracked Ag

2020-09-22

The Future of Commercial Vehicles. Perspectives for Brazil

Published in Automotive Business, August, 26, 2020

1. INTRODUCTION

The use of diesel in Commercial Vehicles and its alternatives has been studied and discussed globally over the past two decades. We have updated future trends annually based on the new platforms in our data and new models in development allowing us a 10-year horizon. In August 2019 we published an article on the subject for Automotive Business Brazil, which is now updating.

Carlos Briganti
Carlos Briganti

In the 2019 article we said that fossil diesel propulsion for commercial vehicles would be exposed to several alternatives and therefore the 20s decade would be a decade of significant changes, justifying yearly monitoring of the subject.

This whole range of studies was then impacted by COVID-19, a new event at the beginning of this decade that is another factor of change in this complex subject.

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