In what would be a major relief for car manufacturers, the Supreme Court is considering to allow sales of 2000cc and above diesel run cars in the Delhi-NCR region. The apex court said that it was open to lifting the ban on registration of diesel vehicles, if a one-time environment compensation cess can be levied on the affected cars instead. The court has asked the lawyers representing auto companies to explore the possibility of levying the one time cess, which happen at the time of registration.
While it may be good news for car makers, this also means that buyers will ending up shelling out a tad bit more on their next purchase which could be anything between the complete Mercedes-Benz lineup to the recently launched Toyota Innova Crysta. The court did point out that the one-time environment cess will be levied with regard to the showroom price and the amount of cess can be worked out upon.
With pollution reaching alarming levels in the capital late last year, the Supreme Court banned the registration of 2000cc and above diesel in Delhi from December 16 last year, which later extended throughout the six months of 2016, accumulating losses month-after-month for auto giants. In fact the National Green Tribunal had even planned to extend the ban to 11 other cities.
When asked about prescribed emission norms, the auto lawyers told the court that the diesel vehicles currently sold in the country prescribe to the Euro 4 emission norms that are levied in major metro cities, while plans for levying stricter Euro 6 emission norms is in the process. The implication of stricter norms also needs major upgrades to vehicles and oil companies, both of which will take time. Auto manufacturers will now come out with a joint proposal to present to the apex court regarding the one-time cess.