Delhi NCR’s diesel ban cost auto industry Rs 4,000 crore in eight months

Supreme Court's ban on the sale of diesel cars in in engine capacity of 2,000cc or more in Delhi NCR cost the auto industry Rs 4,000 crore in eight months, as per SIAM President Vinod Dasari.

The ban, however, has been lifted now, with the SC directing the registration of such diesel vehicles with 1% environment cess.

Desari was addressing people at the 58th Annual Session of the Automotive Component Manufacturers Association (ACMA), where he said that the SC was fed "improper information," which led to the ban.

"Led by media hype, provided with improper information, the courts decided to ban those vehicles which actually methe standards set by the government. It is for the first time that when you meet the law you actually get penalised. The auto industry has lost Rs 4,000 crore in the last eight months," he added.

He added that everyone wanted to regulate the auto industry in a bid to control pollution, without thinking about its consequences on the auto industry.

"It's a matter of great pride that the auto sector provides 30 million jobs and accounts for 50 per cent of the manufacturing GDP and yet it is rather sad when there is congestion, then auto industry is blamed; when there is pollution, auto industry is blamed and when there is an accident auto industry is blamed," Dasari said.

Dasari added that the auto industry has asked the government to ban old vehicles so that pollution can be reduced, and that banning all vehicles will not help reduce pollution.

"After all of this what happened. There is environmental cess, for vehicles that are larger than 2,000 cc, of 1 per cent. People who buy such vehicles... are they going to stop buying these due to this one per cent cess? Is that going to have an impact on Delhi pollution?" Dasari noted.

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