The continuing ban on registration of 2,000cc diesel cars in Delhi means no reprieve for Mercedes-Benz India and Toyota Kirloskar Motor, which have been the worst hit since the ban was enforced in December.
The going has been particularly tough for their dealers. Nearly 20 per cent of Mercedes’ sales comes from the Capital while it is 7 per cent for Toyota. By the time of the July hearing, it will be eight months of zero diesel car sales for the two.
Investments may be hit“It has been extraordinarily difficult for dealers and we can only keep our fingers crossed,” a Toyota source said. If the present trends are any indication, there is really no guarantee that the ban will be lifted after July either. In the process, headquarters in Tokyo and Stuttgart may not be inclined to supporting fresh investments here.
Marginally affected Mahindra & Mahindra got around the problem by readying sub 2-litre diesel engines. However, this is not an option either Toyota or Mercedes will contemplate. The only option is to push petrol engines but this can be only gradual that will do little to alleviate dealers’ woes.
Over the last few months, automakers have made it clear that BS IV diesel is a clean fuel that will comfortably address emission issues. In their view, the pragmatic option is to rid Delhi’s roads of older BS II/III vehicles that are far more polluting.
Despite these pleas, diesel clearly has emerged the villain of the piece in Delhi’s clean-up exercise. Consequently, this saw the Supreme Court also ban all diesel taxis while reiterating that they be converted to compressed natural gas.
Centre’s requestFollowing protests by cabbies, the Centre stepped in and requested the apex court to reconsider its decision. Indications are this may well happen this week, with an environment cess perhaps levied on diesel cars. But the larger issue of the 2,000cc ban hangs in the balance.