Supreme Court likely to lift ban on Diesel vehicles in Delhi-NCR

India: Following the recent discussion regarding the ban on registration of new Diesel-run vehicles over 2,000 CC in Delhi-NCR, the Supreme Court finally came up with a good news for people planning to buy Diesel SUVs. The court announced that it can lift the ban on the registration of Diesel vehicles provided a one-time environment compensation green cess is levied during the registration.

The ban was a result of Supreme Court’s decision on December 2015 when it prohibited registration of new Diesel equipped vehicles over 2,000cc in the Delhi-NCR region. However, the ban was earlier scheduled till March 31, 2016 but later it was extended.

“Buyers of diesel cars must realise these were more polluting vehicles. We are planning to allow car manufacturers to resume sale of these big diesel cars subject to some green cess. The person who buys these big diesel cars must know that he is buying a polluting vehicle and that is why he is paying more” said Chief Justice T S Thakur from the bench of Chief Justices prosecuting the hearing. The bench later questioned the lawyers whether it is possible for the car makers to make a provision for levying “green cess” on such vehicles with regard to showroom price. 

The bench further enquired about the existence of any prescribed emission standards for diesel vehicles from the lawyers. Prior to this, several leading automakers like Toyota, Mercedes, Mahindra & General Motors have approached the court for alteration of the order that banned the registration of these vehicles in Delhi-NCR.

According to a recent report published by TechSci Research, “India Tire Market Forecast & Opportunities, 2021”, India ranks among one of the largest tire markets in the world. Growing automobile sales coupled with expanding automobile fleet are the major factors boosting demand for tires in the country. Moreover, with favourable inflationary scenario, expanding middle class population and increasing national disposable income, tire sales across all the automobile segments are expected to grow in the coming years. Presence of major automotive OEMs such as Ford, Hyundai, Honda, Mahindra, Maruti Suzuki, TATA, BMW, etc. has been hugely contributing to the sales of tires in India.

TechSci Research believes that, the decision undertaken by the Supreme Court to bar the ban on Diesel vehicles over 2,000 CC when implemented, is expected to increase the sale of diesel vehicles in the Delhi-NCR region which is further expected to incline the sale of tires in the Capitol Region majorly generating from the OEM segment in the country.