Supreme Court Bans Registration of Diesel Cars Over 2000cc till March 31

The Supreme Court banned on sale of large diesel cars temporarily in Delhi to combat toxic smog in the capital, prompting concern in the automobile industry as some car manufactures say they may consider investment plans in the India.

According to the Supreme Court order, the registration of sport utility vehicles (SUVs) and other diesel cars with an engine capacity of 2,000 CC or more is banned in Delhi and the National Capita Region with immediate effect until 31st March, 2016.

It is noteworthy that SUVs and diesel cars of 2000 CC and above are usually used by more rich sections of society and because of the higher engine capacity are more hazards to cause higher levels of pollution. A ban on registration of such cars will not therefore affect the common man or the average citizen in Delhi.

Supreme Court Bans Registration of Diesel Cars Over 2000cc till March 31

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SC Temporarily Bans Diesel Cars in Delhi

The Supreme Court temporarily ban on diesel cars in Delhi will damage companies like Mahindra and Mahindra, Toyota Kirloskar and luxury car manufacturers like Mercedes Benz, which have a sizeable portfolio of vehicles in the diesel section. These car manufacturers are disappointed with the order made by Supreme Court and are planning to rework their future programs.

People who have booked SUVs will now get a refund and option to buy other alternatives or get their vehicles registered outside Delhi. The companies are hoping that at the end of the interim period of 31st March, 2016, the court would look at the impact of these orders and take a holistic view on improving the air quality of Delhi, taking into account the overall impact of each action.

M&M, almost 98% of whose vehicles are of the diesel variant, said that it respects the SC orders. Mercedes Benz was far more critical of this court’s orders with around 20% of the luxury vehicles sold in the Delhi.