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Hike in vehicle registration renewal may not lead to jump in new vehicle demand

Sumary of Hike in vehicle registration renewal may not lead to jump in new vehicle demand:

  • Representational image The Ministry of Road Transport and Highways’ (MoRTH) decision to hike fees for renewal of registration of almost all types of vehicles is not expected to have any significant impact on sales of new personal vehicles…
  • Market watchers pointed out that the number of personal vehicles aged 15 years or more that are still plying on the roads is negligible…
  • Used-car buyers also don’t hold on to vehicles aged above 15 years for obvious reasons like high maintenance costs and reduced efficiency,”..
  • The validity of the registration certificate (RC) of a vehicle is for 15 years from the date of issuance of the certificate…
  • While primary buyers (of new vehicles) typically own their vehicle for around eight years, in urban pockets, this average dips to 4-5 years, according to passenger vehicle makers…
  • The numbers are not very dissimilar for the two-wheeler segment, with the exception that owners in rural markets hold on their vehicles for a slightly longer period than their urban counterparts…
  • Government estimates indicate that there are nearly 3.4 million light motor vehicles that are older than 15 years and 5.1 million motor vehicles that are older than 20 years….

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