Wondering about the latest car news on how government policies are reshaping India’s automobile industry? If yes, you have landed on the perfect platform where you will get all the information regarding the policies.
Government policies are majorly changing the automobile industry of India, pushing it toward a cleaner, smarter, and more competitive future. These policies are allowing manufacturers to adopt advanced technologies, expand EV infrastructure, and invest in sustainable transportation.
To get the detailed information regarding these government policies regarding India’s auto industry.
Latest Car News: 5 Government Policies Reshaping India’s Automobile Industry
These laws according to the car industry news in India have an impact on what kinds of cars are produced, how they are marketed, and how people use them, besides giving companies instructions. They are helping India make the shift to safer automobiles, more sustainable transportation, improved production, and electric vehicles. This article describes five government initiatives that are changing India’s auto industry.
1. BS-VI Emission Norms: Cleaner Engines, Cleaner Air
The transition to BS-VI emission standards was the first major policy change that changed the sector. The goal of this policy is to lessen vehicle-related air pollution.
What Are BS-VI Norms?
The amount of pollutants that a car can emit is set by emission standards. In 2020, India made a major and quick transition from BS-IV to BS-VI, rejecting BS-V standards. BS-VI automobiles emit far fewer harmful gases, such as fine particles and nitrogen oxides.
Why Was This Needed?
Poor air quality was a problem in many Indian cities. Pollution is a result of outdated car engines. For the sake of the public’s health, the government has to move swiftly.
How It Changed the Industry?
- Companies redesigned engines.
- Fuel quality was upgraded at all petrol pumps.
- Vehicles became more fuel-efficient and cleaner.
- Some older models were discontinued because they did not meet BS-VI standards.
Impact
The policy forced the industry to adopt modern technology and reduce pollution. It also helped the industry get ready for a time when only clean and effective cars will be permitted.
2. FAME Scheme: Encouraging Electric Vehicles Across India
The second important policy is the government’s strong push for electric mobility through the FAME scheme.
What Is FAME?
FAME stands for Faster Adoption and Manufacturing of Electric Vehicles. It supports electric two-wheelers, e-rickshaws, electric buses, and some electric cars through financial subsidies.
How FAME Helps People?
- Electric two-wheelers become cheaper because of subsidies.
- E-rickshaws get financial support, helping thousands of drivers.
- Electric buses for public transport help reduce city pollution.
How FAME Helps Companies?
- Companies are encouraged to make more EVs.
- Manufacturers like Tata Motors, Mahindra, Ola Electric, Ather, and TVS have expanded production.
- Research and development in EV technology has increased.
State-Level EV Policies
Many states like Delhi, Maharashtra, Tamil Nadu, and Karnataka offer:
- Zero road tax on EVs
- No registration fees
- Extra buyer incentives
- Support for charging infrastructure
Impact
India’s EV market is one of the fastest-growing in the world due to the FAME scheme. It is slowly reducing India’s reliance on petrol and diesel and pushing the country’s shift to a cleaner future.
3. PLI Scheme: Boosting Advanced Automobile Manufacturing
The third major policy influencing India’s automotive industry is the Production-Linked Incentive (PLI) scheme. This scheme aims to reward businesses for producing superior and advanced automotive parts in India.
What Does the PLI Scheme Offer?
Companies receive financial rewards based on:
- How much do they produce?
- How advanced is their technology?
- How much value do they add to the Indian economy?
Which Products Are Supported?
The PLI scheme focuses on:
- Electric vehicles
- Hydrogen fuel-cell components
- Advanced batteries
- Automotive electronics
- High-efficiency engines
Why This Policy Matters?
Earlier, India depended on imported auto parts, especially electronics and battery cells. The PLI scheme helps reduce imports and solidify local manufacturing.
Impact
- Global companies are opening factories in India.
- Indian companies are investing more in new technologies.
- More high-skilled jobs are being created.
- India is becoming competitive in the global auto market.
The PLI scheme is helping the country shift from traditional vehicle manufacturing to advanced and futuristic mobility technology.
4. National Electric Mobility Mission & Battery Policies
Good cars are not enough for electric vehicles, as they also require strong support networks. This includes:
- Battery manufacturing
- Charging stations
- Recycling facilities
Battery Manufacturing Policies
Batteries are the most expensive part of an EV. To reduce battery costs, India promotes local battery cell manufacturing under the ACC (Advanced Chemistry Cell) battery program.
Why This Matters?
- India currently imports many batteries from other countries.
- Local manufacturing lowers costs and increases energy security.
- Battery recycling reduces waste and protects the environment.
Charging Infrastructure Policies
The government encourages the building of charging stations:
- On highways
- In cities
- At petrol pumps
- In malls and offices
- In residential buildings
Battery switching stations and fast charging are being promoted, particularly for two-wheelers and three-wheelers.
Impact
- EVs are becoming easier to use.
- Long-distance travel in EVs is becoming possible.
- Charging costs are cheaper than petrol and diesel.
These policies help create a complete and reliable EV ecosystem.
5. Vehicle Scrappage Policy: Removing Old, Polluting, and Unsafe Vehicles
The Vehicle Scrappage Policy is the fifth key policy that is changing the automobile sector. Its goal is to get rid of outdated and polluting cars from Indian highways.
How the Scrappage Policy Works?
Based on the recent car news, fitness checks are required for cars older than 20 years for personal use and 15 years for commercial vehicles. If they fail, they must be scrapped at government-approved scrapping centres.
Benefits for Vehicle Owners
People who scrap old vehicles can get:
- Discounts on new vehicle purchases
- Lower road tax
- Lower registration fees
Why This Policy Is Important?
Old vehicles pollute more and are unsafe. Removing them helps:
- Reduce pollution
- Improve road safety
- Increase demand for new vehicles
- Promote the recycling of metal and parts
Impact
- Automakers see increased sales as old vehicles are replaced.
- Recycling helps reduce manufacturing costs and saves valuable materials.
Summing Up
According to the car industry news in India these five key government policies are seriously influencing how India’s automotive sector works. The government helps the sector in shifting to a cleaner and more futuristic era by pushing cleaner engines, promoting electric vehicles, supporting local manufacture, constructing powerful EV infrastructure, and getting rid of outdated, polluting vehicles. Although these changes may seem major and perhaps difficult, they are bringing safer roadways, improved technology, and fresh chances. Overall, India’s automotive industry is moving in an exciting new path that will benefit businesses, customers, and the environment.
