Mercedes-Benz files a plea on diesel car bans: Ready to pay 1% environmental surcharge

After the announcement of the diesel car bans in parts of India last year, the German car manufacturer Mercedes-Benz India Limited (MBIL) filed a plea in the Supreme Court.

By: | Updated: August 8, 2016 4:29 PM
As an impact of the diesel cars bans, Mercedes-Benz India registered low sales last month. The car manufacturer has also decided to hold its investment plan in wake of the diesel ban and the policy uncertainty around diesel in the future. (Reuters) As an impact of the diesel cars bans, Mercedes-Benz India registered low sales last month. The car manufacturer has also decided to hold its investment plan in wake of the diesel ban and the policy uncertainty around diesel in the future. (Reuters)

After the announcement of the diesel car bans in parts of India last year, the German car manufacturer Mercedes-Benz India Limited (MBIL) filed a plea in the Supreme Court. The carmaker has agreed to pay 1 % environmental surcharge for being able to sell its diesel vehicles in Delhi and Kerala. The environment charges are expected to be paid at the time of registration of the vehicles.

In December 2015, the NGT had banned the registration of all new diesel vehicles with over 2,000cc engine or diesel cars with more than 10 years plying on roads, in order to curb the rising pollution in Delhi-NCR. Mercedes-Benz was affected significantly by this ruling as most diesel vehicles in its portfolio are powered by engines larger than 2,000 cc.

As an impact of the diesel cars bans, Mercedes-Benz India registered low sales last month. The car manufacturer has also decided to hold its investment plan in wake of the diesel ban and the policy uncertainty around diesel in the future. Recently, the company also announced that it'll soon add petrol variants to all its models on sale in the country. This should help the company offset some of the loss of sales due to the ban on its diesel vehicles in certain parts of the country.

Besides Mercedes-Benz India, car manufacturers like Toyota, Mahindra and Mahindra are also hit by the diesel cars ban orders. Mahindra had responded to the ban by downsizing its diesel engines to under 2,000 cc, allowing it to sell vehicles.

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