The unexpected Assam small car ban has left automakers shocked as such a move is sure to trigger a massive sales slide. Within a few days from the bold move by Guwahati high court, small car sales in the Northeastern state is reported to have declined by 60%.
The high court’s interim order prevents sale and registration of small cars (less than 1,500 kg in) that haven’t passed crash tests. The order stopped sales of popular cars such as Maruti Alto, Swift, Hyundai i1o, Eon, Honda Jazz and many more.
Inventories of banned small cars have been piling up and dealerships in Guwahati are the most affected lot. A Maruti dealership in the city has as many as 300 booked cars at its yard with an uncertain future.
Guwahati high court’s small car ban cites the failure of made-in-India small cars at the Gobal-NCAP crash tests last year and calls for safer cars. Even as India is preparing to implement stricter crash test norms in October 2017, the Assam episode has prompted Global-NCAP‘s secretary general David Ward to write a letter to SIAM, requesting it to take its own initiative to make cars safer before the new governmental mandates come into place.
The interim order not only hurts the state’s car dealers but also seriously limits the District Transport Office’s revenue. The Guwahati DTO stopped registering cars that haven’t passed crash tests.
We hope that the tough yet necessary move by the high court would set things into motion at the automakers’ end to make the cars comply with global crash test norms.
Via – Autocarpro.in