Troubling Days Ahead for Diesel Automobile Firms



With the Supreme Court and the National Green Tribunal hardening their stand against
the growing menace of air pollution in Delhi, vehicle makers are facing the heat on their business. The rulings by both these bodies for stopping the registration of new diesel vehicles in the National Capital Territory, SUV makers like Mahindra & Mahindra, Toyota Motors, foreign luxury brands like Mercedes Benz and Audi etc. are apprehensive about the crash the order could bring to their business. The Supreme Court order in this context is expected to be delivered on Wednesday.

While the NGT order upholds the ban till 6th Jan 2016, the apex court’s order could extend the ban to three months. In such a situation, stocks worth crores will become dead investments.

Automobile doyens and diesel vehicle dealers across the capital are filing petitions in the court asking for the reversal of the orders or take a fresh look regarding the ban. Many are also baffled by the ban targeting 2000cc plus diesel vehicles.

Companies like Mahindra have already issued strong statements saying that such  harsh and spontaneous verdicts could not only affect their business but also will contribute negligible in reducing the particulate matter level in Delhi’s atmosphere. According to them, diesel vehicles alone are not the culprits, but petrol and CNG too has its own contribution in aggravating the situation.

They are also concerned because of the fact that diesel SUVs and luxury cars have come under the scanner earlier too, when crude prices galloped and green activists demanded a cess on ‘large diesel guzzlers’ which were making the most of subsidized fuel.