Automobile dealers in Chandigarh on Wednesday agreed to withdraw all four cases they filed in the Punjab and Haryana High Court challenging the 2022 electric vehicle policy. This came after the administration committed to easing restrictions and lifting the ban on fuel-based vehicles. Two-wheelers attended a meeting held at Raj Bhawan in the morning.
Chandigarh Regional Automobile Dealers Federation confirmed the development to The Indian Express after a meeting chaired by Chandigarh Governor Banwarilal Purohit.
“Our lawyers have also filed a similar (withdrawal of the case) in court. We have heard that once their lawyers confirm that we have withdrawn the case, there will be immediate relief and no ban will be taken. ” said a car dealer who attended the meeting. He added that Union Territory officials had also agreed to review the entire policy on November 27.
Dealers had moved the High Court against the Chandigarh administration’s ban on fuel two-wheelers, saying the pre-Diwali ban would affect sales.
More than 700 vehicle bookings were blocked in Dhanteras on November 10, the first day of Diwali, due to the ban.
There are an average of 10 dealers in UT and dealers say each dealer has about 70 bookings each, all of which are stuck due to the ban.
The ban came into effect last week after the UT announced that it had completed the registration of 13,685 two-wheelers, including the extended target set by the government for this fiscal year to boost sales of electric vehicles.
This decision had a huge impact not only on traders but also on many people who had booked two-wheelers in anticipation of the Christmas season. Auto dealers say most buyers will buy their cars in Punjab and Haryana and have them registered there instead of in Chandigarh.
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Taking note of the festive season and protests by traders, the UT administration on October 18 allowed registration of 1,609 more two-wheelers in the city this fiscal year with a cap of 12,076 units as per the EV policy.
Traders had claimed that the ban would usher in a “black Diwali” and that each dealer would face losses worth an average of Rs 2,000 crore on stocks they had already purchased. Dealers also said that about 2,500 families of their employees will be affected by the ban.
There are about 10 car dealers in the city, selling about 20,000 fuel-powered two-wheelers annually, and about 1,600 units sold every month. During the Christmas season, monthly sales jump to about 4,000 units.
© Indian Express Private Limited
Date first published: August 11, 2023 15:17 IST