Day by day the increase in air pollution in the cities has been a great concern for the Government of India. To curb this air pollution and improve the quality of air, the Ministry of Petroleum and Natural Gas of India has recently proposed a ban on diesel vehicles by 2027, which has raised concerns among various stakeholders in the automotive industry.

The proposal was made by a government panel, which has recommended that diesel vehicles should be phased out in the next few years to reduce air pollution in the country.

The report, headed by former Oil Secretary Tarun Kapoor, further suggests phasing out motorcycles, scooters, and three-wheelers with internal combustion engines by 2035. The panel also calls for a ban on the addition of diesel city buses in urban areas in approximately 10 years.

The report also suggests that only electric-powered city delivery vehicles should be registered from 2024 onwards, and there should be increased usage of railways and gas-powered trucks for the movement of cargo.

India’s aim is to achieve the goal of net-zero emissions by 2070. One of the key steps is to produce 40% of its electricity from renewable sources by the same year. Additionally, India aims to reduce its total projected carbon emissions by one billion tonnes.

A recent report also suggests boosting the use of natural gas in the automobile industry to achieve these targets. The report recommends raising the share of natural gas in India’s energy mix to 15 percent by 2030, up from the current 6.7 percent. Natural gas is a cleaner fuel than liquid fuels like diesel and can help reduce emissions.

Let’s have a look at the reasons behind this proposal and its potential impact on the automotive industry in India.

Reasons behind the proposed ban on diesel vehicles

• To Reduce Air Pollution: Diesel vehicles release toxic pollutants that ruin the quality of air. So, if diesel vehicles are eliminated from the roads, it will help to reduce air pollution and improve air quality.
• Improve Public Health: Air pollution is a major public health problem and it causes several respiratory diseases. Banning diesel vehicles would help to improve air quality and as a result, the health of people will also be improved
• To Promote The Use of Electric Vehicles: Banning diesel vehicles would encourage the use of electric vehicles, which are a cleaner and more sustainable form of transportation.

Challenges and opportunities

The proposed ban on diesel vehicles presents both challenges and opportunities for the automotive industry in India. On one hand, manufacturers who produce diesel vehicles will need to shift their focus to electric and hybrid vehicles to remain competitive in the market. This could require significant investments in research and development, as well as changes in manufacturing processes. On the other hand, the proposed ban presents an opportunity for manufacturers who specialize in electric and hybrid vehicles to expand their market share and gain a competitive advantage.

Conclusion

The proposed ban on diesel vehicles by 2027 is a significant development in the automotive industry in India. While the ban presents both challenges and opportunities for manufacturers, it is a step in the right direction toward reducing air pollution and promoting sustainable transportation. Manufacturers who adapt to the changing market dynamics and focus on developing electric and hybrid vehicles are likely to be successful in the long run.