The Supreme Court on Wednesday maintained its order of banning registration of diesel cars and SUVs with engine capacity over 2000cc in Delhi-NCR region till March 31, 2016. In its judgement, the Supreme Court has also ordered the complete ban on entry of trucks and light commercial vehicles (LCVs) not bound for Delhi via NH1 and NH8. Though the ban on diesel vehicles will affect over 60 cars from different manufacturers, it will mainly affect luxury car buyers since most of their sales come from diesel vehicles and Delhi is one of the most crucial markets for them.
While most mass segment players may not get affected due to this decision, it will surely impact players like Toyota and Mahindra which draw their sales from heavy-engined utility vehicles. Having said that, Mahindra may not see any steep drop in its sales since Delhi accounts for only 2 per cent of its total sales in the country. Toyota India, on the other hand, receives around 8 per cent of its sales from Delhi region and 80 per cent of them are diesel cars.
Commenting on the SC judgment, Vikram Kirloskar, Vice Chairman – Toyota Kirloskar Motor said, “We are concerned about the deteriorating air quality of Delhi. We have always been at the forefront of offering advanced technologies such as hybrids and have always complied with all regulations for vehicles. Toyota’s global approach is to make vehicles that will effectively reduce pollution. There are various sources of pollution which can be measured using a scientific source apportionment study,”
He further added, “to improve the air quality from vehicle point of view we must take a comprehensive view of various factors causing pollution. These can be categorized into following areas:
1) Infrastructure Related: Identify hot spots causing pollution including traffic congestion areas; contribution to pollution by industry.
2) Usage Related: Coaching proper driving habits to drivers considering the stop start nature of traffic.
3) Vehicle Related: Compliance to various emission norms.
Based on all such factors it would be appropriate to draw an action plan which helps improve the air quality in a sustainable manner.”
Suraj Ghosh, Principal Analyst, IHS Automotive says on the matter, “It is commendable that steps are being taken by government and judiciary against the degrading air quality in New Delhi and adjoining NCR cities, but this SC order appears as a knee jerk reaction to the problem of rising air pollution in Delhi-NCR. Without ascertaining the contribution of vehicular emissions and without taking the stakeholders on board, SC made this interim order which could have huge implications on the short and mid term volume and strategic planning of the OEMs,”
“With all the investments being put in for developing new diesel engines that are emission compliant, cleaner and more fuel efficient than ever before, OEMs like Tata, Mahindra, Toyota could suffer major setback.
NCR being one of the major territories for luxury segment cars, which are mostly equipped with big diesel engines, this ruling will definitely hit players like Mercedes, Audi and BMW.
In a way, it shows the lack of a policy and legislation road-map which inturn might risk the “Make in India” initiative of the central government as this SC ruling could have bearings on other Indian cities facing similar air pollution issues.” he added.
Here’s a list of 5 mass-segment cars that will bear the maximum heat due to SC’s judgement –
Since the Innova is Toyota’s bread and butter product and is the company’s top-selling vehicle across the nation including Delhi, today’s judgement will surely go against it. Delhi accounts for almost 8 per cent of Toyota’s sales in India, and Innova being their most popular model in the national capital region will face the maximum heat.
Engine – 2,494cc diesel
Toyota Fortuner
Toyota Fortuner, the country’s top-selling premium SUV, is another product from the Japanese carmaker that’s very popular among buyers in Delhi. The company sells around 1,000 – 1,100 units of the Fortuner in the country every month, out of which Delhi’s contribution is around 8 per cent. And ban on diesel vehicles above 2000cc, will be a bad news for both Toyota and aspiring Fortuner owners.
Engine options – 2,494cc diesel , 2,982cc diesel
Though Delhi’s contribution in overall Mahindra sales is just 2 per cent, the Scorpio is one of the most popular M&M vehicles among buyers in the National Capital. Since the Scorpio doesn’t have any petrol version, the ban will affect 100 per cent sales of Scorpio in Delhi.
Engine options – 2,179cc diesel, 2,523cc diesel
Mahindra Bolero
Mahindra Bolero, the largest selling SUV in the country, is apparently as famous in Delhi region as in other parts of the country. And since it features a 2523cc engine, Mahindra will have to put its sales on hold in Delhi till March 31, 2015.
Engine – 2,523cc diesel
Mahindra XUV500, that received a major facelift earlier this year, is also one of the most popular vehicles among SUV buyers in the national capital region. Similar to the Scorpio and Bolero, sales of the XUV500 will also be on hold for the next three months since it features a diesel engine above the permitted displacement capacity i.e. 2000cc.
Engine – 2,179cc diesel