Auto

FM clears the air, BS-IV vehicles to remain operational for their registration period

Updated : August 23, 2019 07:17 PM IST

Finance Minister Nirmala Sitharaman has dismissed speculation that BS-IV vehicles would become illegal to drive after 2020 when BS-VI norms take effect.

Domestic passenger vehicle sales, a key economic indicator, plunged an annual 31 percent in July.

FM clears the air, BS-IV vehicles to remain operational for their registration period

To boost demand in the automobile sector, the Central government has decided to put off a proposal to increase registration fees of vehicles. Finance Minister Nirmala Sitharaman announced the decision at a press conference during which she spoke about the Indian economy.

Addressing the press conference, Sitharaman announced a slew of measures to rev up the automobile sector. The Bharat Stage IV vehicles purchased before March 2020 will remain operational for the full period of their registration. The minister has dismissed speculation that BS-IV vehicles would become illegal to drive after 2020 when BS-VI norms take effect.

The BS emission standards are norms that define the quantity of pollutants a vehicle is allowed to emit. The BS-VI norms are more stringent than BS-IV norms.

The banks are also expected to make car loans cheaper. "The RBI has directed banks to release the benefits of changes in repo rates to the customers. The aim is to reduce the interest rate on housing and auto rates," she said.

The FM’s presser comes as sentiment is souring in the country's boardrooms after a much-anticipated budget in July failed to provide any stimulus, and instead hiked taxes on the ultra-rich and on foreign portfolio investors. Economic growth in January-March slid to a near five-year low of 5.8 percent. Most analysts expect data due later this month to show that growth in April-June faltered even further.

Domestic passenger vehicle sales, a key economic indicator, plunged an annual 31 percent in July -- the steepest recorded pace of decline in nearly two decades. Companies have already started to cut their workforces. The autos sector alone has laid off about 350,000 workers since April.

Follow our complete coverage of measures announced by Finance Minister Nirmala Sitharaman here.

Have you signed up for Primo, our daily newsletter?

It has all the stories and data on the market, business, economy and tech that you need to know.

To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more