Battle lost: No respite for OEMs as SC stays diesel cars ban in Delhi

Update:

January 5th spelled Dooms Day for the diesel vehicle manufacturers M&M, Toyota and Mercedes who wanted the ban on their diesel vehicles to be lifted.

As reported earlier, the top court had ruled that all new diesel vehicles with an engine capacity of 2000cc or more cannot be registered till 31st March, 2016. The OEM's had gone to Supreme Court against this ban but the court rejected their claim that SUVs indeed cause damage to the environment.

The OEMs argued that diesel vehicles are becoming a norm worldwide and are being used by the common people in cities as well as in rural areas. The judges asked the likes of Mercedes and Mahindra to provide the documentary evidence for the same and rejected their claim saying vehicles of engine capacity 2000cc are actually used by rich and not by the common people.

The judges satirically asked, "You are saying diesel vehicles pollute less. So are your vehicles emitting oxygen?"

This order caused immediate damage to M&M whose stocks took a beating and plunged 5.5%. To add to their woes, the Supreme Court hinted at extending the ban to vehicles having an engine capacity of less than 1500cc too.

It would be interesting to see how the OEM's would come up with new strategies and plans to revive their market in coming days!

January 4, 2016:

Automotive majors Mahindra, Toyota and Mercedes moved the Supreme Court today requesting for modifications in the last month's order that notifies to ban all new Diesel vehicles that have an engine capacity of 2000cc or more in the National Capital Region till 31st March, 2016.

Source

Chief Justice T.S Thakur, who heads the Apex Court Bench said that their plea would be heard on Tuesday.

Reports suggest that over 60 cars across various OEM's are affected with the ban order who are worried about poor sales during this period. But it is to be noted that when people's lives are at stake such drastic measures might be required to curb the damage.