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NGT diesel car ban spells doom, INR 1,000 crore stock piles at Delhi dealerships

SIAM to address impact of global economy on auto industry for 2013

Automakers M&M, Toyota, Tata Motors, Ford and Nissan besides the three German luxury makers Mercedes Benz, BMW and Audi have been adversely affected by NGT ban on diesel cars in the Capital.

The ban on diesel car registrations called for by the National Green Tribunal in Delhi till January 6, 2016 has caused automakers to literally shut shop. Fresh demands for diesel cars are on hold and company dealerships find piling stocks to the extent of INR 1,000 crores.

While dealerships have to contend with piling stocks, the NGT ban on diesel cars has left customers anxious. Customers who have already made bookings have to deal with extended waiting periods while some are cancelling registrations of diesel variants outright and switching to petrol engined options. Some customers are also seeking to register vehicles outside of Delhi in Noida and Gurgaon regions but this is not an easy task as they have to provide valid address proof.

2016 Audi Q7 India Launch

Audi India launched the new Q7 in Delhi last week. It is offered only with diesel engine option. Similarly, there are many such luxury car models from Audi, BMW, Mercedes, Jaguar, Land Rover and Volvo which are only offered with diesel engine option.

Delhi being the largest market for luxury vehicles has seen luxury automakers the most affected lot with dealers asking for support from parent companies. Delhi accounts for 7% of car and SUV sales in the country while premium and top variant models also see higher demand in Delhi. 36% of cars sold are diesel variants while this goes upto 90% in the case of SUVs. Mahindra and Mahindra with its entire lineup of diesel variants face the most challenge while automakers Maruti Suzuki, Hyundai and Honda with just 30-40% of sales from diesel variants are in better position as far as this ban and piling stocks are concerned with a wide range of petrol variants in their lineup.

Stock piles are slated to go up even further in the coming days as it is the time of the year when the industry doles out large discounts and customers avail of these year-end discounts fearing rising prices in the New Year.

New Audi Q7 Diesel Delhi Launch – Photos



About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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  • Subin Abraham

    Now manufactures like Tata and Mahindra can find some way to cheat on cubic capacity and sell 2.2 L engines too. Can seek help from VW

  • Anoop Nambiar

    This is a good initiative. Let Delhi run on petrol.Anyway they get the lowestfuel rates in the entire country.Even the cars are cheaper in Delhi.