No more non-EV two-wheeler registrations from July in Chandigarh: Administration
Dushyant Singh Pundir
Chandigarh, June 9
It will be the end of the road for non-electric (petrol) two-wheelers in the city with the UT Administration deciding to halt registration of internal combustion engine (ICE) vehicles once the target fixed for 2023-24 in its Electric Vehicle (EV) Policy is achieved, most likely in the first week of July.
Petrol 2-wheeler dealers 17
Total employees 2,500
Current stock Rs 100 cr
According to the target, only 6,202 two-wheelers running on ICE are to be registered in the city. After this, their registration will be stopped and only electric two-wheelers will be registered.
Under the policy, there is no provision for further registration of ICE two-wheeler vehicles from the next fiscal.
No scope for quota after this fiscal
Once targets are achieved, further registrations (permanent or temporary) will not be allowed in UT. There is no quota for non-electric two-wheeler registrations after this fiscal Pradhuman Singh, RLA
Since April, as many as 4,032 two-wheelers have already been registered. In such a situation, only 2,170 non-electric two-wheelers can be registered now. Also, 257 electric two-wheelers have been registered in the city so far this fiscal.
This has created a sense of uncertainty among two-wheeler dealers in the city. They have been urging the administration to allow registration of non-electric two-wheelers even after the target for this fiscal is achieved.
In a bid to gradually phase out two-wheelers and three-wheelers running on ICE, the administration planned to register a minimum of 35% electric two-wheelers in 2022-23, 70% in 2023-24 and 100% from 2024-25.
In order to limit and discourage the use of non-electric vehicles, reduction of 10% in four-wheelers and 35% in two-wheelers as compared to the preceding year had been planned in the first year by way of capping their registration in the city. A reduction of 20% in four-wheelers and 70% in two-wheelers has been planned for the current financial year (2023-24).
Pradhuman Singh, Registering and Licensing Authority (RLA), UT, said the registration of non-electric two-wheelers would not be done by the office of the RLA once the target of 6,202 non-electric two-wheelers was achieved.
Similarly, registration of four-wheelers would not be done once the target of 22,626 non-electric four-wheelers was achieved for the current financial year. The target for four-wheelers is likely to be achieved by December.
He further said after achieving the targets of non-electric two-wheelers, further registrations (both permanent and temporary) would no longer be allowed within the UT as there was no registration quota for non-electric two-wheelers in the policy for the subsequent fiscal.
Singh said the target of non-electric two-wheelers was likely to be achieved by the first week of July and that of four-wheelers by the end of December.
Meanwhile, members of the Federation of the Chandigarh Region Automobile Dealers’ Association stated the policy to restrict the sale of non-electric vehicles in UT would have a negative impact on the local economy.
The automotive industry was a major employer in the region, with many companies producing non-electric vehicles, engines, and related components. Limiting the sale of non-electric vehicles would impact these companies, potentially leading to job losses and financial losses for local businesses, they said.
Furthermore, the restriction on non-electric vehicles would limit consumer choice and potentially lead to a monopoly in the market for EVs, they said.
EVs were still relatively expensive compared to non-electric vehicles, and not everyone could afford these. By restricting the sale of non-electric vehicles, the city was essentially forcing people to switch over to EVs before they were ready, potentially leaving them without a reliable means of transportation, they contended.
The average funds required to set up a dealership is Rs 5 crore (without property). “Currently the dealers have inventory worth Rs 100 crore, which is at stake. As a consequence of the order, two-wheeler dealerships will be closed and most will be bankrupt. Almost 10,000 persons will be affected economically,” said a member of the association.
“In the current scenario of joblessness because of economic conditions, the government is further taking away jobs. This will not do any good as we cannot stop petrol vehicles from other states to enter the city,” he said, adding it was going to force people to buy “expensive” EV vehicles.
Registration of petrol two-wheelers was closed for 50 days in the last fiscal. According to the policy, the target of registering petrol two-wheelers for 2022-23 was 65%. The target was met by February 10, after which the administration issued an order banning the registration of petrol two-wheelers in the city till April 1. After this, the dealers went to the Punjab and Haryana High Court, but they did not get relief.
Will render most businesses bankrupt, say automobile Dealers
- Rs 5 crore is required to open dealership, may face bankruptcy in face of closure, say dealers
- 10,000 people connected directly or indirectly to the business are likely to be affected by move
- Will limit consumer choice; potentially lead to monopoly in EV market
- No good as petrol bikes from other states not barred from entering city
- EVs are still relatively expensive, not everyone can afford these
- Dealership closure will impact servicing of non-EV vehicles already sold, they contend
Nearing targets under EV Policy provisions
- 6,202 petrol two-wheelers can be registered in city this fiscal
- 4,032 registered since April; 2,170 to be registered by first week of July
- No scope for further registration of petrol 2-wheelers from next fiscal
- 22,626 non-EV 4-wheelers can be registered this fiscal; target to be achieved by end of December
