Car Makers Fear loss of Hundreds of Crores with Delhi’s Diesel Vehicle Ban

traffic toll booth india BS-VI Emission Norms

Car makers fear loss of hundreds of crore rupees with the immediate effect of Delhi’s Diesel Vehicle Ban

The National Green Tribunal (NGT) on Friday ordered, with immediate effect, that diesel-fuelled vehicles will not be registered in national capital New Delhi whilst registrations of such-engined vehicles that are more than a decade old wont be reneged – as interim measures were taken to curb the alarming pollution scale.

About 5.71lakh diesel vehicles are found on Delhi’s roads which is only about a quarter of total petrol-powered vehicles. Despite emitting lesser Co2, the levels of NoX pollutants produced by diesel engines directly lead to cancerous diseases. This is the main reason behind the new NGT order to clamp down soaring pollution levels.

Delhi's Diesel Vehicle Ban

This has put a great deal of dilemma clinging on the delivery of cars already been booked with a part or full payments by the customers. With the added pressure on clearing inventories at the end-of-year sales, car makers  believe an impending loss of hundreds of crores of rupees will be inevitable.The automakers want a clear-cut view of the Delhi government about registration and the delivery of vehicles already set out and ready to leave the showrooms.

This confused state-of-affairs led to an immediate impact on thousands of diesel vehicles as around 1,300-1,400 vehicles are being registered at Regional Transport Offices across Delhi on daily basis. More significantly, according to an analysis, an estimated 30% of them are diesel powered.

With many more thousands of diesel vehicles are stranded in manufacturer’s godowns that were initially lined up for year-end sales, it’s believed that possible losses will mount to hundreds of crores of rupees.

Although the topflight car manufacturers are hiking prices starting from the month of January, these year-end inventories will endure them huge losses if the sales in a big city like Delhi dips to a new low.

The companies are estimated to keep an inventory of four-to-six weeks at their respective dealerships normally. The automakers are keeping their fingers crossed, however, as they wait for government’s decision on the situation of all the vehicles already made way to the showrooms before the ban was issued on 11th December.

Follow us on Facebook, Twitter & on Youtube