News on Indian economy has been getting lots of attention in the media. Studies have shown that any country's economy does get a boost if the automobile sector is doing well. India's automobile sectors can play an important role in boosting up the economy in the future, as they have done in the past. Therefore, ways and means should be found out to boost up this sector. One way of doing this is to either directly or indirectly encourage different consumers to regularly buy automobiles after discarding their old ones based on the reckoning of reduced life span of vehicles.
In advanced countries like the USA, the transit system expect their buses to have a useful life of twelve years and 2,50,000 miles. Based on a report, in India
the average service life of a passenger car is about 20 years with 1500 km of annual travel. In general, the average vehicle life span in Japan is shorter than in the United States or Europe. The average vehicle mileage in Japan is also less than in the United States and Europe. With more frequent turnover and lower mileage, demand for replacement auto parts and accessories per vehicle in Japan is considerably less than in the United States and Europe.
In India public buses are allowed to run for around 10 years after attaining certain mileage and depending on their condition they are allowed to run for some more years. The laws governing this issue should be modified to enable replacement of buses say after every 7-8 years. In this manner, public transport system will get strengthened as the common man who regularly use bus service for transport can feel more comfortable travelling in new buses instead of relying on old and very old buses. Additionally, laws governing disposal of old and replaced vehicles should be modified in a manner that discarded vehicles should either go to earmarked junk yards or bought back by transport manufacturers for eventual disposal at their end through proper facilities available. With such modifications, automobile manufacturers would keep getting orders for new vehicles more frequently which will have a direct positive impact on the economy.
Regarding vehicles other than buses like commercial cars in India, it is reckoned that the average life span is more than advanced countries and Japan.
The following is a chart which estimates the average age of passenger cars (basing the year 2004) for some advanced countries in the world:
|Name of the Country
|| Years of usage
Basing the above, the existing laws governing the life span of passenger cars and other vehicles along with mileage run rules should be modified in a manner to encourage users to go in for new vehicles more frequently. If cars are replaced, say every 6-7 years or less, car manufacturers in India would report better financial results auguring well for the economy. This will also open up opportunities for selling used cars from India to third world countries. Rebates allowed in taxation laws for availing depreciation allowance for different automobiles should be modified in a manner to induce more users for buying new vehicles. All such moves will help in getting more frequent and repeat orders for the various automobile sectors spread across different parts of India.
Hoping the above favours consideration at the right quarters.
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