Auto sector for steady approach in limiting vehicle registration

The auto industry has welcomed Niti Aayog’s suggestion of limiting registration of petrol and diesel vehicles, but has called for a steady approach and ways to limit congestion and improve infrastructure.

Sharing his thoughts with DH, Toyota Kirloskar Motor (TKM) Vice Chairman and Wholetime Director Shekar Viswanathan said, “One should limit the production of petrol and diesel cars, not only from the point of view of reducing energy, but also from the view of reducing polution. But this must be done in a very gradual manner, and not abruptly.”

“The government must tread carefully, because a large part of the auto component ecosystem is dependent on internal combustion engines, and livelihoods will be at stake if the government intends to move suddenly,” adds Viswanathan.”

Niti Aayog on Friday pitched for restricting the registration of diesel and petrol vehicles, saying that the adoption of electric and shared vehicles could save $60 billion in fuel cost by 2030.

“Limiting registration would affect gradually and not overnight, and certainly not in the next five years. A way to encourage people towards electric is to limit registration, which must be done to reduce urban congestion,” Viswanathan said, elucidating that in Bengaluru, one may want to limit registration of fuel vehicles in some RTOs, or could have a system of auctioning to hand out licences.

It’s interesting to note that TKM has been bullish on pushing hybrid vehicles in India. “Eventually, consumers will be making the choice, and the state must be technology-agnostic. What the government should do is to look at issues like pollution, take old diesel and petrol vehicles off the road, and give more incentives to electric and hybrid vehicles,” he added.

PriceWater House Partner Abdul Majeed opined that it is important to move towards sustainable transportation in the country, and electric vehicles would go a long way in aiding this.


“There are actually several points to be considered in terms of electric vehicles — a clean power source, infrastructure, and competitive cost. The cost of EVs especially are high, owing to low battery life. We need to have a mechanism to make it more cost-effective. Obviously if these things are there, then we can urge people to move in that direction,” he said.

Suggesting incentives for EV customers, Majeed said that it is important for a nation of 1.2 billion people to limit congestion and protect the environment.