Diesel Vehicles Ban Cost Auto Industry Rs. 4,000 Crore

The ban on registration of diesel vehicles with engines above 2,000cc in Delhi NCR had clearly put a handful of manufacturers in a tight spot. Though the Supreme Court lifted the diesel ban earlier this month in lieu of 1 per cent green cess, the Indian automobile industry collectively suffered substantial losses in the duration - to the tune of Rs. 4,000 crore to be precise.

Vinod Dasari, President, Society of Indian Automobile Manufacturers (SIAM), said the industry suffered a loss of Rs 4,000 crore in 8 months following the ban on registration of diesel vehicles with an engine capacity of 2,000cc or above in Delhi NCR. Dasari added that it was "improper information" supplied to the courts that led to the ban.

He explained, "Led by media hype, provided with improper information, the courts decided to ban those vehicles which actually meet the standards set by the government. It is for the first time that when you meet the law you actually get penalised. The auto industry has lost Rs 4,000 crore in the last eight months."

Dasari said he believes the auto industry is often targeted for blame and regulation. He added, and without looking at the real cause of pollution. He added, "It's a matter of great pride that the auto sector provides 30 million jobs and accounts for 50 per cent of the manufacturing GDP and yet it is rather sad when there is congestion, then auto industry is blamed; when there is pollution, auto industry is blamed and when there is an accident auto industry is blamed. I feel everyone wants to regulate the auto industry. Let's take the Delhi example. Every winters when there is fog, there is a lot of media hype, lots of NGOs get involved and they blame one industry; everyone wants to blame auto industry."

He went on to point out that less than 20 per cent pollution comes from the auto industry and that they have requested the government several times to ban old vehicles to help reduce pollution.

Urging the government to "ban vehicles that cause pollution", Dasari goes on to question if the 1 per cent green cess on bigger diesel vehicles will actually have any impact on the pollution levels in the national capital.