SC ban on diesel vehicles unfortunate, not optimal: Auto cos

Terming the temporary ban on new diesel SUVs and cars with engines above 2,000 cc in Delhi and NCR as "unfortunate", auto makers today said this will not lead to any perceptible improvement in the city's air quality.
Stating that the decision "isn't optimal", industry players said the pollution issue in the city needs to be looked at holistically with a comprehensive view of various factors causing the problem.
"The pollution issue in Delhi needs to be looked at holistically if the objective of improving the air quality is to be achieved.
"In light of this, the Supreme Court order banning private diesel passenger vehicles and SUVs of 2,000 cc engine capacity and above, is most unfortunate," industry body SIAM said in a statement.

While this would certainly hurt some segments of the automotive industry, it will not bring about any perceptible improvement in the air quality of Delhi, it added.
Reacting to the order, Mahindra Group chairman Anand Mahindra tweeted: "So, even if we believe the decision on diesel vehicles isn't optimal, we'll honour it and develop vehicles that comply with their stipulations."

Sharing similar views, Toyota Kirloskar Motor Vice-Chairman Vikram Kirloskar said: "There are various sources of pollution which can be measured using a scientific source apportionment study.
"To improve the air quality from vehicle point of view we must take a comprehensive view of various factors causing pollution."

The worst hit by the Supreme Court order are German luxury carmaker Mercedes-Benz and Tata Motors-owned JLR as their entire diesel model range is powered by engines above 2,000 cc.
Mercedes-Benz sells a total of 24 models in India starting with the A-Class, priced at Rs 27.5 lakh, going up to Rs 2.7 crore for the S63 AMG coupe (all prices ex-showroom, Delhi).
Tata Motors-owned JLR's Jaguar line up ranges from the Jaguar XF starting at Rs 47.67 lakh to Jaguar F-Type which is tagged at Rs 1.88 crore (ex-showroom Delhi).
The Land Rover vehicle models start from the Range Rover Evoque to the top end Range Rover priced between Rs 50.5 lakh and Rs 3.93 crore (ex-showroom Delhi).

Delhi, along with Mumbai, is the largest market for luxury vehicles in India.
According to industry estimates, the capital city accounts for about 20 per cent of total luxury vehicle sales in the country.
SIAM said the Supreme Court order has been passed after totally ignoring the findings of a recent study on source apportionment for NCT of Delhi shared with the Court.
SIAM further said, "If reduction of pollution was the
objective, the Hon'ble Court could have encouraged more BS IV vehicles to be sold and could have restricted use of older vehicles that pollute more, as one old vehicle emits emissions equivalent to five new vehicles."

Drawing attention to other factors that lead to pollution in Delhi-NCR, SIAM said if pollution has to be controlled, then construction of delayed bypasses in Delhi must be completed so that trucks not destined for the city could be effectively diverted.
There must be accountability to ensure that burning of biomass and paddy fields is immediately stopped in and around NCR, it added.
Stating that the auto sector is a soft target, SIAM said focussing only on it has resulted in high pollution continuing in Delhi, despite the industry moving rapidly to BS IV norms within a short period of 10 years - a feat not performed by any other country till date.

"It is distressing to note that lessons from the past have not been learnt," it added.
Today's order by Supreme Court will hit only six models of German luxury carmaker BMW out of its 20 models sold in India. These include the 5 Series 530D, 6 Series 640D and X640D.
BMW's model range in India includes hatchback 1 series, sedans 3, 5, 6 and 7 Series, along with SUVs X1, X3, X5, sports car M Series and hybrid model i8, which are priced between Rs 29.9 lakh and Rs 2.29 crore (ex-showroom Delhi).
Rival Audi is the least affected as only two of its models -- SUV Q7 and sedan A8 -- come under the ban. The company has a total of 13 models in India, starting with the A3 priced at Rs 25.5 lakh, going up to sports car R8LMX which is tagged at Rs 2.97 crore (ex-showroom Delhi).

Homegrown utility vehicles major Mahindra & Mahindra will also be hit hard by the ban as its popular models, including the XUV500, Scorpio, Xylo and Bolero, have engines above 2000 cc. These vehicles are priced in the range of Rs 6.6 lakh to Rs 17.36 lakh (ex-showroom Delhi).
Toyota Kirloskar Motor (TKM) will also be hit as two of its best selling models, multi-purpose vehicle Innova and SUV Fortuner are affected. These are priced between Rs 10.47 lakh and Rs 27.02 lakh (ex-showroom Delhi).
Tata Motors' utility vehicle Sumo Gold, SUV Safari and MPV Aria are also affected by the order. These models are priced between Rs 6.52 lakh and Rs 15.52 lakh (ex-showroom Delhi).

Mahindra & Mahindra (M&M) said in a regulatory filing that the order affects 2 per cent of the company's total monthly sales. M&M Executive Director Pawan Goenka told analysts that its dealerships in NCR have an inventory worth Rs 100 crore.
Commenting on the matter, a Tata Motors spokesperson said: "While we will see some impact on our sales in the three-month period specified in the order, our continued foray into petrol segment, as shown by recent launches, will stand us in good business stead over a period of time.