SC allows registration of diesel vehicles above 2000 cc in NCR, imposes 1% green cess

After a eight-month long wait, auto companies would heave a sigh of relief with the Supreme Court lifting the ban on registration of diesel engines of over 2,000 cc, but only after imposing a 1 per cent ex-showroom price as the environment surcharge.

Companies like Mercedes-Benz and Toyota Kirloskar Motors will be the maximum gainers, as most of their fleet would be available to customers for the first time after December 16, when registration of all their diesel vehicles was stopped in Delhi and the National Capital Region comprising of Gurugram, Noida and Faridabad.

Now, the auto companies or their dealers will be liable to deposit the 1 per cent charge with a government bank to be managed by the Central Pollution Control Board. The transport department would register a big diesel car or SUV in NCR only on the receipt of payment of this green charge.

The ban had also affected companies such as Mahindra & Mahindra and Tata Motors, which had also approached the court earlier for relief. The ban has affected sale of diesel vehicles across the country and its ratio to petrol vehicles has come down to as low as 30 per cent, the lowest in the past decade.

The order will allow sales of popular models like the Toyota Innova Crysta, which leads the multi-passenger vehicle segment and Mercedes E-Class, country's largest selling luxury sedan.

In a statement issued to the media, Mercedes-Benz India said that it had as an interim measure offered to pay 1 per cent of the ex-showroom price of its vehicle towards anticipated environment compensation charge, 'voluntarily' and not on the premise that its vehicles are polluting the environment.

"Mercedes-Benz as pioneers of numerous technological innovations has the technology available, and can switch our entire fleet to BS VI by 2018. However, we need compatible fuel to do so. We welcome the government's decision to advance the mandatory BS VI emission norms to 2020. Also, we think the introduction of BS VI fuel is the best viable option to curb pollution," the company said in a statement.

There has been no clear directive on any charge on smaller diesel engines and the court indicated to consider the issue in due course. Many of the popular models like the Maruti Swift or the Hyundai i20 have sub-2,000 cc diesel engines.

Meanwhile, Delhi and the adjoining Haryana and Uttar Pradesh transport departments are likely to start registration of new diesel vehicles from next week. Most of the carmakers are likely to pass on the financial burden to the customers.

Popular models now on sale in NCR…

Toyota: Fortuner & Innova
Mercedes-Benz: A-Class, B-Class, C, E, GL, GLA, GLE, S-Class
Mitsubishi: Pajero Sport
Hyundai: Santa Fe
Ford: Endeavour
BMW: 5-sereis, 6-series, X3, X5, X6
Tata: Safari, Sumo
Audi: A8, Q5, Q7
Chevrolet: Trailblazer
Mahindra: Scorpio & XUV500