Automakers lost Rs. 4,000 crore due to diesel ban; supreme Court lifted the order in Delhi-NCR earlier this month after loads of debates
Diesel ban has been one of the most controversial topic in Indian automobile market in recent times. The ban stayed nearly nine months in the Delhi and NCR over sales and registration of the 2000 cc and larger diesel engines. The automobile industry in the country has lost nearly Rs. 4,000 crore due to the diesel ban.
The affected auto manufacturers include luxury auto manufacturer like Mercedes Benz, while SUV maker Mahindra & Mahindra has also faced serious sales decline in the region. Due to the ban Toyota changed its policy about the Indian market, and also announced that it won’t launch any new model in the country in recent future. Among other affected automakers are Tata Motors, Ford, Chevrolet etc.
The ban was implemented in December, 2015 by the Supreme Court citing the cause of larger diesel engines polluting the environment. The decision faced mixed reactions, as some believed, this was the right measure to prevent the rising air pollution in the region, while other believed; it’s not adequate at all. The automakers also questioned the ruling, saying they are being punished even after following the rule.
After nearly 9 months of dilemma Supreme Court finally lifted the ban earlier this month, and implemented 1% green cess on the 2000 cc and larger diesel engine powered cars in the region. During the ban, while some auto manufacturers like Mahindra & Mahindra has introduced lower displacement 1.99 litre diesel engines, some other auto majors decided to shift its focus toward petrol engines. As instance, German luxury automaker Mercedes Benz has decided to introduce petrol engines across its entire range in the country.
Talking about the loss Mr. Vinod Dasari, president of SIAM said, the court decided to ban the diesel engines influenced by the media. He also stated that, this was the first time the auto manufacturers were penalized even after meeting the law.