NGT Diesel Vehicle Ban Leaves Automakers Worried

The National Green Tribunal's (NGT) ban on registering diesel vehicles in the capital state of Delhi has left many carmakers worried. This is mainly because carmakers have invested a lot in technology of diesel engines.

The next hearing will be on 6 January, until then, carmakers won't be able to sell any vehicles during this period. The order has also caused a loss of Rs. 6,614 crore on the market capitalisation of vehicle and auto parts manufacturers.

The shares of Maruti Suzuki, Mahindra, Tata Motors, and Bosch all ended low on Friday. Other carmakers such as Hyundai, Honda, Toyota, Renault, and Ford will also be hit by this decision.

The National capital region accounts for nearly 12 percent of vehicle sales in India, and Delhi alone accounts for 7 percent. Diesel vehicles contribute about 25 to 30 percent of the overall sales in this region.

The order of banning diesel car registration in Delhi came after the state proposed to restrict traffic flow by introducing an odd-even policy.

Carmakers have invested a lot to manufacture diesel engines, in terms of technology. Diesel engines are cleaner, and pollute much less than a few years ago. The mindset has to change about the fact that diesel engines are dirty, is what a few industry players think.