Mahindra estimates 2 per cent loss in sales due to diesel-registration ban in Delhi

Team OD  /
16 Dec 2015 20:45:59 IST

On December 16, 2015, the Supreme Court declared a ban onthe registration of any new diesel-powered SUVs and luxury cars with engine capacities exceeding2000cc in Delhi and the NCR regiontill March 31, 2016. This move is part of the SC's attempt to curb the rising air pollution in the national capital.Thisdecision is bound to affectsale of diesel vehicles that continue to be morepopular in the Indian market than their CNG and petrol counterparts.

Mahindra Scorpio 2015

Many car manufacturers have opposed this move and spearheading this groupis Mahindra and Mahindra. The Indian automobile maker is currently riding on the success of the Scorpio, Xylo and XUV500 SUVs - all of which fall in the category of vehicles currently banned from registration in Delhi. Mahindra and Mahindra has expressed its concerns in a letter addressed to the Supreme Court and signed by itscompany secretary, Narayan Shankar.

In the letter, Shankar states that while the company empathises withthe rising concerns of pollution in Delhi, the Supreme Court musttake a holistic view of the situation and look at the overall impact of the decision, oncethe duration of the court order ends on March 31, 2016. Shankar further elaborated that the overall impact of the court order on Mahindra'stotal monthly sales is estimated at 2 per cent.

For the duration of the banthough, the company is evaluating various options to work within the framework given by the Supreme Court.

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