The National Green Tribunal and the Supreme Court has confirmed a ban on the sale of new diesel vehicles in the national capital. No passenger vehicles, vans, and utility vehicles with an engine above 2,000cc are to be sold in Delhi. Mahindra and Mahindra is the manufacturer that seems to be affected the maximum.
Mahindra offers a majority of its vehicles with a 2.0-litre diesel engine and above. The diesel vehicle ban means Mahindra would register poor sales until the ban is lifted. Mahindra's main focus has always been diesel engines and the ban could affect sales significantly.
Currently, Mahindra offers a 2.0-litre and above diesel engine in four models: the Scorpio, Bolero, Xylo, and the XUV5OO, which will be banned from being sold in Delhi. Mahindra confirms that over two percent of total sales come from Delhi, and the manufacturer could take a major hit in sales.
Several other manufacturers too will be affected by the diesel vehicle sale ban in Delhi. Luckily, most manufacturers also offer petrol models within their portfolio to maintain sales. The Supreme Court has decided to curb the sale of diesel vehicles in Delhi till March 2016.
Mahindra recently launched the TUV3OO model with a 1.5-litre diesel engine. The S101 is next to be launched in India and will be powered by a 1.2-litre petrol and diesel engine. Both models will face added pressure to sell high volumes to make up for loss of sale from Mahindra's remaining portfolio.