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Formulation of National Automotive Policy for holistic development of automobile sector in India

Press Information Bureau:  February 19, 2018

New Delhi: Department of Heavy Industry is working for formulating the National Automotive Policy for holistic development of automobile sector in India. After series of one to one stakeholder consultation, Department has finalized the draft Automotive Policy which proposes to:

Adopt a long-term roadmap for emission standards beyond BSVI and harmonize the same with global standards by 2028

Rollout CAFE norms till 2025 and beyond and setup incentives/ penalties

Adopt a composite criterion based on length and CO2 emissions to classify vehicles for differential taxation purposes

Harmonize automotive standards over the next 5 years in line with WP-29

Improve the skill development and training eco-system, increase accountability of ASDC and implement a Labor Market Information System

Retain tax exemption on different levels of R&D expenditure with strong audit control

Scale-up of indigenous R&D with commercially viable innovations

Harmonize AIS and BIS standards on safety critical parts over next 3 years

Fast track adoption of Bharat New Vehicle Safety Assessment Program

The draft Automotive Policy is available in the Department of Heavy Industry’s website ( for information of all stakeholders and for seeking their comments by 26th February 2018.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.