New truck buyers in India are in for a rude shock this year.
The government has decided to scrap the sale of new vehicles in the country for at least 10 years, as the country faces a record of car-related deaths and injuries.
The move is part of a drive by the government to curb the nation’s soaring death toll, which reached a staggering 1,087 people in January, the latest month for which figures are available.
Drivers and passengers have been on a collision course for decades over safety standards and emissions, but the government is increasingly demanding a new approach to the nation, with the government of Prime Minister Narendra Modi and his party facing mounting criticism.
The government’s push comes as India grapples with a soaring number of auto-related injuries.
Since the start of the year, more than 7,000 people have died in car crashes in India, with more than 10,000 still in hospital, according to the National Disaster Response Force.
More than 4,000 have been killed in other road accidents, according the latest data from the National Crime Records Bureau.
Drivers have complained of the lack of a proper safety culture, the inability to communicate effectively and the lack and delay in the issuance of tickets.
The government is expected to announce a new set of rules later this month, according TOI.
For years, the country’s government has relied on a handful of state-run vehicle dealerships and a fleet of state transport vehicles.
The auto sector has traditionally been a big business, with its profits fuelled by sales of state owned vehicles.
However, as demand for cars has been declining in the past two years, dealers have struggled to make ends meet and are now looking to raise capital for the first time in years.
The market is set to be a much more competitive environment next year, when a number of new models are expected to enter the market.
Some of the largest vehicle dealers, such as Tata Motors, are set to take over the fleet of vehicle dealers.
According to the latest official data, the industry’s revenue was $19.5 billion in 2020, which was down from $23.4 billion in 2017.
Auto sales have slumped to a low point in recent years as a result of the government’s attempts to curb pollution, the increase in road fatalities and an ageing population.
India’s economy contracted by 1.2% in the last quarter, and the country recorded its first new record number of deaths in 10 years.
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