Top 5 Happenings Of 2016 In The Indian Automobile Industry

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2016 has been an eventful year for the Indian automobile industry. It has been a mixed bag as the sales of four-wheelers and two-wheelers grew significantly in the Indian market. But there were hurdles in the way and the manufacturers tried their best to overcome them.

Here are the top 5 happenings in the Indian automobile industry in 2016.

1. Delhi Diesel Car Ban

It was a big surprise to manufacturers and consumers when National Green Tribunal (NGT) instructed central and state governments to stop procuring diesel vehicles. The diesel cars with engines up to 2,000cc and above were banned from registering in the Delhi/NCR region.

The car manufacturers such as Tata Motors, Mahindra & Mahindra, Mercedes-Benz and Audi were most affected. After the manufacturer's plea in front of the Supreme Court, the ban was lifted on a condition of green fine.

2. New Safety Norms To Be Adopted

India is lagging behind when it comes to the safety of both passenger vehicles and pedestrians. But soon stricter safety norms will come into effect. The crash test will be compulsory for Indian cars from October 1, 2017. Apart from that safety equipment such as ABS and airbags will be mandatory from October 1, 2020.

3. Volkswagen Diesel Emission Scandal - India Impact

In September 2015, German auto giant Volkswagen's biggest scandal came into light. The manufacturer used a test cheating software on its 11 million diesel cars including VW, Audi, Porsche, Skoda and Seat. The emission scandal was first broke out in the US.

After several recalls in the US, Europe and global markets, Volkswagen announced a massive recall in the Indian market. The company recalled 1.90 lakh cars in India and clarified that it was a voluntary recall to fix the cars and it was not facing any charges in the country.

4. New Motor Vehicle Amendment Bill

The Union Cabinet finally passed the much debated Motor Vehicles (Amendment) Bill 2016 which brings stricter laws and fines for the safety of vehicles. So if you're caught violating traffic rules the fines will be a lot more than you expect. This is a significant move to emphasis the importance of following the rules.

5. Impact Of Demonetisation

November 2016 was an eventful month for the Indian automobile sector. The demonetisation of Rs 500 and Rs 1000 notes in the middle of festive season took a toll on the sales. tHe sales figures for passenger vehicles, commercial vehicles, three-wheelers and two-wheelers plummeted to all-time low in four years. However, as the month progressed the conditions improved and the manufacturers are slowly getting back on track.

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Story first published: Tuesday, December 27, 2016, 14:54 [IST]
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