Discover how India’s latest govt policies like E20 fuel, revised GST rates, and vehicle bans affect car and bike owners. Understand their real impact on Indians
If you’re someone who loves cars and bikes, or even just depends on them every single day (which is honestly most of us in India), you might have noticed that owning and maintaining a vehicle has started feeling like a never-ending rollercoaster ride. Every few months, there’s a new policy, new fuel type, revised tax, or some ban that makes you wonder: “Did I make a mistake buying this car?” Let’s sit down and talk about what’s really happening. I’m not here to bore you with government jargon or fancy headlines. I’ll explain things the way I would to a friend over chai—because these policies affect all of us, whether you’re an enthusiast or just someone trying to commute daily without losing your sanity (or wallet).
The E20 Fuel Push – Good for the Environment, Tough on Us?
So, the government has been pushing for E20 fuel (20% ethanol blended with petrol) to make India less dependent on crude oil imports and to support farmers who produce sugarcane (since ethanol comes from it). On paper, it sounds like a win-win: cleaner air, energy independence, and happy farmers.
But here’s the catch—most cars on the road right now are not made to handle E20 fuel properly. Older engines, especially the ones bought before 2020, could face issues like poor performance, lower mileage, or even engine damage in the long run. Imagine filling your tank and then realizing your car suddenly feels sluggish or starts demanding more fuel just to do the same job. Not cool, right?
Yes, new cars are slowly being made E20-compatible, but what about the lakhs of cars already running? Replacing a car isn’t cheap. For a middle-class family, that’s not even an option most of the time. So while E20 might be a step toward the future, for now, it feels like we’re the guinea pigs in a big fuel experiment.
Also Read: Will Government’s Decision to Sell E20 Petrol Destroy Your Car’s Engine?
Revised GST Rates – Why Does Buying a Vehicle Feel Like Buying Gold?
Another area that stings is GST on two-wheelers and four-wheelers. The tax rates are already high—28% GST plus extra cess depending on engine size or luxury tag. That’s why even a basic hatchback feels so expensive these days. Now, with recent discussions around revising GST slabs for EVs, hybrids, and regular ICE (petrol/diesel) vehicles, buyers are left confused. You walk into a showroom, and instead of worrying about which variant to buy, you’re worrying about how much tax the government will slap on top.
For example, EVs have a 5% GST, which is fantastic. But hybrids? Still taxed like regular petrol cars. Makes no sense, right? Hybrids save fuel, pollute less, and are perfect for India’s traffic-filled roads, yet they’re taxed almost as if they’re luxury products. Sometimes I feel policies are made with half-baked logic, and the burden falls on—you guessed it—us buyers.
Also Read: New GST Rates For Vehicles Could Come Into Effect From This Date
The Infamous Delhi NCR Ban – 10 Years Diesel, 15 Years Petrol
If you live in Delhi NCR, you already know this pain. The 10-year ban on diesel cars and the 15-year ban on petrol cars has been like a dark cloud hanging over vehicle owners. Imagine saving up for years to buy your dream car, maintaining it with love, and then one fine day being told, “Sorry, you can’t legally drive this anymore.” Brutal, isn’t it?
I have a friend who owns a 2016 diesel Hyundai CRETA that runs perfectly fine, no smoke, no issues. But he’s already started planning to sell it outside NCR because next year, it’ll hit the 10-year mark, and he can’t use it here anymore. Doesn’t matter how much money he spent on upkeep. Doesn’t matter how attached he is to it. The rule is the rule. But here’s the twist- recent developments suggest that the government might rethink this policy. There’s talk that instead of a blanket ban, they might allow cars to continue running if they pass strict pollution checks or retrofitting standards. If this actually happens, it’ll be a huge relief for thousands of car owners. Because honestly, scrapping a perfectly good vehicle just because of its age feels wasteful and unfair. Fingers crossed that this change comes soon.
The Domino Effect on Car and Bike Owners
Now, let’s connect the dots. With E20 fuel, GST confusion, and bans in NCR, what do you think happens to us, the owners?
- Resale value crashes. Imagine trying to sell your 9-year-old diesel car in Delhi. Buyers don’t want it because they know it’s almost banned.
- Maintenance costs rise. You need ethanol-compatible parts, fuel additives, or retrofitting solutions.
- Buying new feels out of reach. Thanks to GST and rising base prices, even an entry-level car costs as much as a premium product did a few years back.
- Emotional toll. Cars and bikes aren’t just machines here. They’re part of our family stories—road trips, college rides, weddings. Losing them because of rules hurts more than we admit.
So, What Should We Do?
Honestly, it feels like we’re stuck between loving cars and fearing policies. But here are a few things I’ve figured out (through mistakes of my own and from others):
- Check policy compatibility before buying. If you’re buying new, make sure it’s future-ready (E20 compatible, BS6, etc.).
- Think long term. That diesel SUV might look tempting, but if you’re in NCR, think twice.
- Stay updated. Rules change fast. One day hybrids are out of favor, the next day they’re the future.
- Take care of your ride. A well-maintained car/bike will always have some value, no matter the bans.
My Two Cents
Sometimes, I feel the government forgets that not everyone can switch cars like changing smartphones. Policies that look great on PowerPoint presentations don’t always work for real people who saved for years to buy their first Alto, Swift, or Bullet. Yes, cleaner fuel and stricter emission norms are important—we all want cleaner air. But the way these rules are rolled out often feels rushed, without thinking about the middle-class guy who still has an EMI running. At the end of the day, all we want is some balance. Make policies that help the environment, but don’t punish people who already invested their hard-earned money in vehicles. Let us adapt, but give us time.
Final Thoughts
Owning a car or bike in India has always been special. It’s freedom, comfort, and sometimes even a status symbol. But with every new policy, it feels like that joy is being replaced with stress. E20 fuel makes us nervous about compatibility. Revised GST keeps prices sky-high. Diesel/petrol bans in NCR create panic. And yet, we still love our machines, don’t we? Because no matter what, that first morning drive or that late-night ride reminds us why we fell in love with cars and bikes in the first place. So, while policies may keep shifting, one thing doesn’t change—our bond with our vehicles. Let’s just hope the people making the rules remember that bond too.
