Reactions from auto industry on SC's removal of Delhi diesel ban
Yes, the somewhat illogical Delhi diesel ban has been lifted off now by the Supreme Court. Now, you can go ahead and buy that Merc diesel you were always eyeing in NCR. While the industry as well as the car buying public are rejoicing, here are a few quotes from the auto manufacturers.
"We have followed the earlier direction of the Supreme Court and filed an Interim Application seeking relief on the ban on our cars. Following the court suggestion, we as a voluntary interim measure, offered to pay 1% of the ex-showroom price of the vehicle towards anticipated Environment Compensation Charge as a deposit, and not on the premise that our vehicles are polluting the environment. We reiterate that, being the pioneers of numerous technological innovations, Mercedes-Benz has the technology available and can switch our entire fleet to BS VI by 2018, however, we need compatible fuel to do so, to provide our customers with the latest technologies which are available worldwide. We welcome the government's decision to pre-pone mandatory BS VI to 2020. We think the introduction of BS VI fuel is the best viable option to curb pollution. Mercedes-Benz India is waiting for compatible fuel quality and as soon as the required diesel fuel is made available we are ready to switch our portfolio quickly to the EU 6 standard."
Mahindra and Mahindra
"We are very relieved with the decision of the Honourable Supreme Court today. Hope this decision will put all controversy surrounding diesel fuel behind us and we will be able to focus on the more important task of making our vehicles compliant with BS 6 norms by April 2020".
"As per ICRA's estimates, ~30% of Utility Vehicle (UV) segment in India had come under the ban. In addition, almost 50-60% of the Luxury Car market in India (i.e. 35,000 units p.a.) was also adversely impacted because of the ban. In lieu of uplifting the ban, the SC has offered the OEMs to pay 1% cess, which will be passed on to the customers and is unlikely to adversely impact demand in ICRA's view."
"We welcome the decision of honourable Supreme Court. It is pleasing to get clarity, particularly for the customers. The lack of clarity has already had a severe negative impact with the worst affected being people working at dealerships. There have already been job losses due to the impact this ban has had on business in the Delhi NCR. Short-term decisions lead to increased uncertainty for the future. It creates a lot of confusion for the market in general. What we really need is a long term roadmap. We need clarity on policy direction and time to amend our strategy in line with the customer demand. It is however pleasing to see this welcome step and hope that this will lead to some stability for business in the Delhi NCR."
"Lifting of ban on bigger vehicle in NCR region is a good move because this step alone will not address the emission issue. We need to figure out holistic solutions in automotive sector by replacing old vehicles on the road. Promoting environment friendly vehicles as well as significantly improving public transport are some of the areas which requires immediate attention. In addition, we need to move to higher and more uniform emission standards across the country."
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Team OD | 14 Feb 2019
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