The Supreme Court agreed to lift ban on big diesel cars and SUVs (above 200cc) in Delhi-NCR and asked carmakers to pay 1 per cent tax on the ex-showroom price of the vehicles as environment tax.
After almost eight months, The Supreme Court of India has lifted the ban on bigger diesel cars in Delhi-NCR. It was December 2015 when the Apex Court had temporarily banned the registration of diesel cars above 2000cc in the National Capital Region, and it was extended later. The court has asked carmakers to pay 1 percent of the ex-showroom cost of the vehicle as environment cess. The automobile industry has welcomed the decision of the Supreme court and extended gratitude.
Dr Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd said, “We are very relieved with the decision of the Honourable Supreme Court today. Hope this decision will put all controversy surrounding diesel fuel behind us and we will be able to focus on the more important task of making our vehicles compliant with BS 6 norms by April 2020”.
Abdul Majeed, Partner Price Waterhouse and an auto expert said, “Lifting of ban on bigger vehicle in NCR region is a good move because this step alone will not address the emission issue. We need to figure out holistic solutions in automotive sector by replacing old vehicles on the road. Promoting environment friendly vehicles as well as significantly improving public transport are some of the areas which requires immediate attention. In addition, we need to move to higher and more uniform emission standards across the country.”
The Supreme Court also asked the CPCB (Cenral Pollution Control Board) to open a bank account in public sector banks to receive the environment cess from carmakers developing big diesel cars and SUVs.
While Maruti Suzuki and Hyundai didn’t have much of an impact of the ban, Toyota, Mahindra and all luxury players were the worst affected. As a matter of fact, Toyota had lost the business worth Rs 1700 crore due to the ban. Of all the mass-segment vehicles, Toyota Innova Crysta & Fortuner, Ford Endeavour, Mahindra Scorpio & XUV500 were the worst hit due to the ban.