If you are thinking of buying a car, then wait for now, because a lot of rules are going to change. It is possible that in the coming months, the government may make petrol and diesel cars more expensive. And it is also possible that road tax on EVs or hybrid cars may be completely removed or reduced significantly, and additional subsidies may be given. We are not saying this ourselves. In fact, the central government is preparing a draft of new Corporate Average Fuel Economy standards for passenger vehicles, and these new rules will come into effect from April 1, 2027, that is, from next year. And there are some very big changes coming in this, changes that can directly impact your pocket. We thought that wherever you may be, everyone likes cars. Everyone travels in cars, and those who don’t have a car think about buying one by taking a loan or something. Anyway, we are already facing the impact of E20. The average mileage of petrol cars is also coming down. There is also an impact on car engines, and going forward, petrol and diesel cars could become more expensive. So let us tell you what could become expensive and what could become cheaper.https://www.thehindubusinessline.com/economy/new-fuel-efficiency-rules-global-testing-systems-could-raise-car-prices-lower-mileage/article70988449.ece
New Era Will Be Of E20
Now, there will also be benefits for buying E85 and E100 ethanol vehicles. You know that E85 and E100 fuel means fuel that can run a vehicle on a very high percentage of ethanol, even completely on ethanol. There is also a plan for this. Flex fuel cars, meaning petrol cars that can run on 85% to 100% ethanol, will be given a 22.3% benefit. In other words, their price could be almost 23% lower. If a company sells one flex fuel car, it will be counted as 1.1 cars on paper. Now, the biggest impact will be on E20 cars, because most of our cars now come under E20. Under the new policy, if you buy an E20 car, the government will consider the emissions from that car to be 8% lower in the company’s calculations. That means it will help the company achieve its pollution targets.The biggest question is: Will E20 cars become more expensive or cheaper? The answer is no. These rules will apply only to new vehicles manufactured or imported after April 1, 2027, which are classified under the M1 category.
Will the cars or gear systems also change? The policy is encouraging six speed or higher gearboxes because they can save around 5% fuel. Now, mileage, or average fuel economy, is also very important because the higher the mileage, the more you save, and the lower the mileage, the more money you spend, because India is being moved away from the old MIDC system towards WLTP at the global level, which is considered to be closer to real world mileage. A company passbook will also be created. Every company will have an account, which will be called a passbook, and it will have to maintain it. The entire record of good performance credits and poor performance debits will be maintained.
Let me explain this in a simple way because it is slightly technical. Every company will be given a quota. If it sells more E20 vehicles, its credits will be lower and its debits will increase. And the more EVs, flex fuel vehicles or hybrid vehicles it sells, the more credits it will receive. So when its credits increase, it can offer discounts on EV, flex fuel or hybrid vehicles. But when the debits increase, there is a problem. The cars will become more expensive.
Expensive Cars Could Become Cheaper (EV)
The objective of the new rules that the government is bringing is to make things a little more eco friendly. The first thing is that the prices of EVs could come down. The second is to reduce dependence on petrol and diesel. It is also being said that if all this happens, the prices of ethanol, hybrid and EV vehicles could become cheaper, while polluting petrol and diesel cars could become more expensive. Because there is already pressure on the government regarding ethanol. There are protests happening over this, saying, “If you are now using 20% ethanol and only 80% pure oil petrol remains, then reduce the price by 20%. If not 20%, then at least reduce it by 10%.” Petrol is being sold at ₹100 to ₹110 per litre. In some places, it is even ₹115. How much more can a common person bear?
Anyway, now let us understand what could become cheaper. According to the new policy being prepared, companies will be given super credits for selling EVs and hybrid cars. If a company sells one electric car, it will be counted as three cars on paper. One hybrid car will be counted as 1.6 cars. This will make it easier for companies to meet their pollution reduction targets. In such a situation, companies may sell these cars at attractive prices or with offers so that more of them are sold. In other words, the government will help here. Apart from this, it is also important to understand why petrol and diesel cars could become expensive.Now, which vehicles cause more pollution? The bigger vehicles. In those vehicles, of course, BS6, DEF and all these systems are being used. But even then, what is the government saying? The government is saying that petrol and diesel cars will become a headache for manufacturing companies such as Tata, Mahindra and Maruti.https://unbiasedpollkhol.com/
Acceptance Is Still a Question For EV
During the monsoon, when waterlogging is happening in Gurgaon, Delhi and NCR, and in Mumbai, as soon as water reaches the upper level of the vehicle, EVs and hybrid cars can face problems. So bring EVs and hybrids, but first prepare the infrastructure for them. There should be an EV charging station every two or four kilometres. They should be available on highways. But that infrastructure is not there yet. Once a vehicle breaks down, it takes so much time to repair it, especially when the battery needs to be replaced. And even after the warranty period, the cost can be significant.
First prepare India for EVs. You have already implemented E20. Even E20 compatible vehicles are facing problems. You may remember that in Raipur, Maruti Suzuki was reportedly asked to refund the entire ₹20 lakh. The allegation was that the company had lied and that E20 fuel was reducing mileage and causing problems with fuel pumps. We have made an entire documentary on this issue. So E20 is not going back. Whether E25 will come or not, we don’t know. But now they are saying that E100 and E85 vehicles, which are called flex fuel vehicles, will receive benefits and could be made around 23% cheaper. A lot of benefits will be given to them.
All of this is happening. Whatever updates come next, we will tell you. But a major, lengthy policy is being prepared.
So, if you are thinking of buying a car, remember the date: April 1, 2027, from when these rules are supposed to come into effect.
If you want to buy an EV, buy it after April 1, 2027.
If you want to buy a hybrid, buy it after April 2027.
And if you want to buy a petrol or diesel car, buy it now and get it over with, because going forward, their prices are expected to increase. The question of them becoming cheaper does not really arise.