Diesel ban in Delhi will benefit Maruti, Hyundai

The National Green Tribunal recently decided to ban the sale of diesel vehicles in Delhi till the 6th of January . This decision has been taken due to the drastic degradation of the air quality in and around Delhi. Delhi currently is one of the most polluted cities to live in the world. This decision will have a major impact on manufacturer that rely on diesel engine such as Mahindra and Mahindra, Toyota, Nissan, Renault, etc.

While companies like Honda, Suzuki will benefit from their petrol powered options. It is quite interesting to note that, as per the Delhi government, it is only the automobile that is responsible for all of Delhi’s pollution problems.

They are not considering any other drastic measures in any other industry to curb the pollution issue.

Year ending is the time auto manufacturer generally give high discounts to temp prospective clients in making their purchases. Especially clients who missed out on festive offers recently. Discounts also help manufacturer clear exsisting stock with the year so that they need to carry forward less inventory into the new year.

Petrol cars due to lower demand have lower profit margins and diesel cause of their better economy generally are sold at a premium.

Car manufacturers and dealers are looking at a big impact in their sale number due to this blanket ban.

With a already slowing down of the economy and the addition of the ban ensure that these companies do not end the year on a positive note.

The diesel car industry is looking for loses around INR 500 crore with this ban and with the upcoming proposal to restrict cars with odd and even numbers on alternate days we will have to wait and  see the cumulative impact on the automobile industry and people in general.

Source: ETAuto