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.
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.
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