Large diesels stay banned in New Delhi image

The Indian Supreme Court extended once again the ban of new large diesel vehicles from registration in New Delhi.

As India’s cities are topping the worldwide pollution charts, with its capital being right on the first spot, the nation’s Supreme Court has imposed in December 2015 a temporarily ban on the registration of vehicles powered by diesel engines of 2.0 litres or larger. Following an extension of this embargo at the end of March, the Court has once again decided to push forward with the prohibition, at least until the next hearing on May 9, Bloomberg reported.

The automakers have strongly disputed the curb, as some of them have suffered major sales drops, while it has also forced the companies to adapt their local strategy by offering smaller diesels options or expanding their gas engines lineup. As an example, Toyota has said its India sales plunged 41 percent in March, with the demand being mostly affected in New Delhi. The capital is the nation’s largest market for passenger cars, with about 2.8 million private vehicles including SUVs and vans.

The extension of the ban comes after the government imposed new higher vehicle taxes in its annual budget for April 2016 – March 2017 fiscal year. More precisely, it introduced an additional 1 percent levy on cars that cost more than one million rupees (around 15,000 dollars), as well as an infrastructure-related charge based on engine capacity.

Via Bloomberg