Auto industry heaved a sigh of relief as Supreme court on Friday lifted ban on sale of bigger diesel cars in Delhi and national capital region on payment of one per cent of the ex-showroom price of su
Auto industry heaved a sigh of relief as Supreme court on Friday lifted ban on sale of bigger diesel cars in Delhi and national capital region on payment of one per cent of the ex-showroom price of such vehicles as green cess.
Some 30 per cent of utility vehicle (UV) segment in India had come under the ban, said rating agency ICRA. In addition, it said almost 50-60 per cent of the luxury car market in India was also adversely impacted because of the ban.
“It is pleasing to get clarity, particularly for the customers. The lack of clarity has already had a severe negative impact with the worst affected being people working at dealerships.
“There have already been job losses due to the impact this ban has had on business in the Delhi NCR,” said Joe King, Head, Audi India.
He said that short-term decisions lead to increased uncertainty for the future.
“It creates a lot of confusion for the market in general. What we really need is a long term roadmap. We need clarity on policy direction and time to amend our strategy in line with the customer demand,” said Mr King.
The direction of Supreme Court modifying its December 16, 2015 order came on a plea of automobile giants including Mercedes-Benz.
Mercedes-Benz, which had offered to pay 1 per cent green cess, insisted they made the voluntary offer in order to overcome the ban and “not on the premise that our vehicles are polluting the environment”.
