Petrol, Diesel and Electric Vehicles To Grow Together in India: PM Modi

Increasing climate concern is matched by increasing pressure on carbon emitters to change the way they do business. The global automotive climate shifts towards clean and eco-friendly alternatives to internal combustion engines (ICE), the Indian Government also have been passing regulations and encouraging electric vehicles in the country.

This was also the ninth straight drop in monthly passenger vehicle sales. Sales have fallen in 12 of the 13 months since July 2018, underscoring the sharp slowdown in demand in the world’s fourth-largest automobile market. In July, passenger car sales plunged 36% to 122,956 units, while utility vehicles recorded a 15% drop to 67,070 units. Vans suffered a 46% decline to 10,804 units. Industry body Siam releases wholesales, or factory dispatches, of automobiles, and not retail sales. Whereas, Hyundai and Mahindra and Mahindra reported 10% and 15% decline in sales, respectively in July.

In Box: The Indian auto sector is seeing a super slowdown that is the worst in 20 years and the recent assurance by PM Narendra Modi's is seen as a respite and has been lauded by the industry.

With the announcement in cut in GST rates and the FAME II scheme hints at an imminent electric revolution that stands before the Indian automotive industry. The auto industry has been opposing a proposal by Niti Aayog to push for full conversion to EVs for ICE three-wheelers by 2023 and two-wheelers with engine capacity of 150cc or below by 2025, saying a transition was completely uncalled for and could jeopardise the industry.

PM Narendra Modi assured on Wednesday, that conventional engine vehicles and electric vehicles (EVs) can co-exist in India, saying it would encourage investment and job creation in future. Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said, the assurance is completely in-line with SIAM's recommendations that all relevant technologies should co-exist in India's journey towards sustainable mobility.

N Raja , Joint Managing Director , Toyota Kirloskar Motor said, the PM's statement has given a lot more confidence and clarity and will help the auto industry in efforts to come out of the ongoing sales slump. "Now with this clarity, people who were thinking of delaying purchases, what we called as fence-sitters, can come forward. It will help in improving the market," he said.