SIAM: Hike in vehicle registration fees will worsen de-growth automotive industry

The proposed vehicle registration fees increase will aggravate the de-growth of Indian automotive industry, says the President of the Society of Indian Automobile Manufacturers (SIAM), Rajan Wadhera.

Maruti Suzuki Car Manufacturing plant in Gurgaon, India.

In an apparent reaction to the proposed registration fees hike by the Union Government, The Society of Indian Automobile Manufacturers (SIAM) has expressed serious concerns, according to a statement released by the Apex body. As per the recent draft notification issued by Ministry of Road Transport and Highways (MoRT&H), Government of India, which proposes increase of Registration Charges of new vehicles by 10-20 times, depending upon the vehicle category, from the present level. New medium good / passenger vehicles are proposed to attract Rs 20,000 Registration fee instead of current Rs 1,000. A new truck or a bus Registration fee has been proposed at Rs 20,000 in place of Rs 1,500. A new two wheeler Registration fee is proposed to be Rs 1,000 in place of current Rs 50. Similarly, Registration fee for new car is proposed to be Rs 5,000 up from Rs 600 at present.

Downturn

Currently, the Automobile industry is going through an unprecedented downturn as sales of new vehicles have plummeted significantly over the last several months. Wadhera, said, “Such increase in the Registration Charges of new vehicles would further aggravate the market condition negatively.”

Rajan Wadhera, President of SIAM.

Hence, SIAM has suggested that instead of hiking Registration Charges for new vehicles, Government of India should first look at implementing various measures as suggested by SIAM to bring back growth in the automotive industry.

SIAM is a not for profit apex national body representing all major vehicle and vehicular engine manufacturers in India. SIAM works towards supporting sustainable development of the Indian Automobile Industry with the vision that India emerges as the destination of choice in the world for design and manufacture of automobiles. It also works towards facilitating enhancement of the competitiveness of the Indian Automobile Industry, reducing cost of vehicles, increasing productivity and achieving global standards of quality.