In a major setback to premium and luxury carmakers, the Supreme Court on Tuesday suggested to ban registration of diesel cars and SUVs with capacity over 2000cc. The order on the same is likely to be announced tomorrow.
Slamming car dealers who voiced their concern against the National Green Tribunal's recent order of banning registration of diesel cars, TS Thakur - Chief Justice of India said, "People's life is at stake and you are interested in selling cars,"
Last week, the NGT had ordered that no new diesel vehicles be registered in the National Capital. The tribunal also asked the state and central governments to stop buying diesel cars in Delhi. These orders will be reviewed on January 6, which is the next date of hearing.
Besides ban on cars above 2,000cc, the Supreme Court also agreed with NGT's demand of banning the entry of trucks older than 2005 in NCR and increase the Green tax for trucks. Commenting on Delhi government's odd-even formula, the court said that it wasn't sure if it would work. "You can implement it if it is going to help. We haven't stopped you.", it said.
Delhi's share in total volume of passenger car sales in India is about 7 per cent. While Toyota, Honda and Ford achieve up to 15 percent of their total car sales from Delhi, it's 7 percent for carmakers like Hyundai and Maruti. Having said that, the decision of banning diesel vehicles above 2000cc will mainly affect luxury carmakers such as Mercedes, BMW and Audi since 3/4th of their sales come from diesel variants. The apex court's recent order will also be a big blow to Toyota Kirloskar Motor as two of its top-selling cars - Innova and Fortuner - will get affected by this.