Chandigarh Auto Dealers to Drop Legal Challenge Over EV Policy

In a significant development, automobile dealers in Chandigarh have decided to withdraw all four legal cases they filed in the Punjab and Haryana High Court, contesting the Electric Vehicle Policy of 2022. This decision comes in the wake of a meeting at Punjab Raj Bhavan and Administrator Banwari Lal Purohit, where the administration provided assurances of easing restrictions and lifting the ban on fuel-based two-wheelers.
The Federation of Chandigarh Region Automobile Dealers, confirming this update, stated that their lawyer has already submitted the request to withdraw the cases in court. They were informed that as soon as the court receives confirmation of the withdrawal, the promised relaxation will be implemented, and the ban on fuel-based two-wheelers will be lifted.
The legal challenges were initiated by the dealers in response to the ban on fuel-based two-wheelers, which they argued had a detrimental impact on their sales, especially in the lead-up to Diwali. Over 700 vehicle bookings for Dhanteras, which marks the beginning of the Diwali festivities, were obstructed due to this ban.
Chandigarh has approximately 10 dealerships, each holding around 70 bookings, all of which were adversely affected by the ban. Many buyers turned to neighboring Punjab and Haryana to purchase and register their vehicles, bypassing Chandigarh.
In response to the festive season and protests by traders, the UT administration increased the cap on two-wheeler registrations from 12,076 to 13,685. However, the ban had already inflicted significant financial losses on dealers, who estimated an average loss of Rs 2 crore per dealer for the stock already purchased, affecting around 2,500 families of their employees.
Chandigarh’s automobile dealers typically sell around 20,000 fuel-based two-wheelers annually, with monthly sales jumping to approximately 4,000 during the festive season. The withdrawal of legal challenges is seen as a step towards resolving the ongoing issue and providing relief to both dealers and buyers.