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Kerala NGT ban could impact 20% car sales

According to sources, the major impact will be on Mahindra and Toyota, and on luxury cars

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T E Narasimhan Chennai
The National Green Tribunal's order on banning diesel vehicles more than 10 years old and diesel vehicles with engines larger than 2,000cc will bring down vehicle sales in Kerala by 20 per cent.

On Monday, the National Green Tribunal Circuit Bench in Kochi banned light and heavy diesel vehicles more than 10 years old in six cities, Thiruvananthapuram, Kochi, Kollam, Thrissur, Kozhikode and Kannur.

The Bench, comprising NGT Chairperson Justice Swatanter Kumar and Expert Member Bikram Singh Sajwan, also directed the state government not to register any diesel vehicle in with an engine capacity of 2,000 cc and more, except public transport and local authority vehicles.
 

John K Paul, president, Kerala Automobile Dealers Association, said around 20 per cent of automobile sales would be impacted in Kerala by the NGT order.

According to industry sources, the major impact will be on Mahindra and Toyota, and on luxury cars. Mahindra and Toyota did not respond immediately.

The government and manufacturers must take up the issue, said Paul, adding the industry must get one or two years for planning.

Lorry owners in Tamil Nadu are also worried because 30,000-40,000 lorries plying between Tamil Nadu and Kerala are over 10 years old.

M R Kumaraswamy, president, Lorry Owners Federation (Tamil Nadu), said this would have a huge impact on lorry owners in Tamil Nadu and Kerala. It would affect the movement of vegetables and infrastructure materials between the two states, he added.

He said 50,000-60,000 lorries plied between Tamil Nadu and Kerala every day, of which 30,000-40,000 were over 10 years old owned by driver-turned owners.

Shekar Viswanathan, Vice Chairman & Whole-time Director – Toyota Kirloskar Motor Pvt. Ltd welcomed NGT’s order of banning 10–year-old vehicles. The move is in a right direction of improving the air quality by getting rid of existing higher polluting BS–1, BS-2 and BS–3 compliant vehicles that are plying on the roads.

"At the same time we respectfully disagree with the order of banning the registration of diesel vehicles above 2000 cc in Kerala, which will severely affect the legitimate interests of TKM and its dealers in the state. We along with a couple of other industry players are the only ones affected. The unintended beneficiaries of this ban are those who produce less than 2000 cc vehicles with the same diesel that is said to be polluting".

He added that the company's belief that diesel is not a more polluting fuel than petrol or CNG when used with the latest technology. Diesel engine technology will continue to be an integral part of every automaker, considering stringent fuel efficiency norms being introduced in year 2017. "Our endeavor is to meet the Indian customer’s preference for advanced and fuel efficient diesel engine technology that reduces pollution," he said.

Viswanathan said the company will continue to make products that are environment friendly as before.

"we are fully compliant with all emission norms as laid down by the Government of India over the years and also compliant with all requirements mandated by the Indian laws," he said adding that the company will continue to pursue all remedies that will be available to the company as stipulated by Indian law to have this order reviewed.

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First Published: May 25 2016 | 4:25 PM IST

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