Shares of carmakers including Tata Motors and Mahindra & Mahindra (M&M) rose over 2% after Supreme Court (SC) lifted the ban on sale of diesel cars above engine capacity of 2000 cc in Delhi region. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The SC said that a 1% 'green cess' will be levied and cars will be registered only after this levy has been paid by carmakers. It also ruled that Central Pollution Control Board will set up a separate account in a public sector bank to collect this green cess. SC will decide on the roadmap to spend this money. 

RC Bhargava, Chairman, Maruti Suzuki told Zee Business that the ban has not impacted carmaker much. He said, "Only 30% cars sold by Maruti Suzuki are diesel."

The decision to levy this green cess on diesel cars with smaller engine capacities will be taken at a later date, SC said. 

 

On Thursday, Maruti Suzuki India Chairman RC Bhargava had said that the investors of the company are losing confidence and customers are unsure of what to do in the wake of diesel vehicles being targeted as the "main villain" for air pollution in the capital and NCR region.

"We think the introduction of BS VI fuel is the best viable option to curb pollution. Mercedes-Benz India is waiting for compatible fuel quality and as soon as the required diesel fuel is made available we are ready to switch our portfolio quickly to the EU 6 standard,” Mercedes said.