The ban on diesel vehicles and the implementation of the odd-even formula is likely to impact sales of passenger vehicles, Maruti Suzuki India Ltd chairman RC Bhargava said on Tuesday.
The Delhi government has banned the sale of diesel vehicles with engine capacity of above two litres, and introduced the odd-even formula, to curb pollution.
In a reference to the demand by some members of Parliament that they be exempt from Delhi’s car rationing scheme, Bhargava said: “Some MPs have demanded removal of odd-even because it creates a problem in their going about their business. That’s quite valid, I think. My business may be of less national importance, but I too have to make a living and support my family.”
That’s not all.
The former IAS officer also cited a report by the Indian Institute of Technology (Delhi), which said that cars contribute only 2% of Delhi’s overall pollution. Construction dust, fly ash, Delhi’s proximity to the desert, and industrial smokes result in maximum pollution.
Bans, including the one on diesel vehicles of two litres and above, are targetted at the affluent class, Bhargava said. To put things in context, Delhi has over 5.5-million two-wheelers, which are exempted from the ban. Also, older diesel cars, especially those from the pre-Bharat Stage (BS) regime, emit 5.5 times more pollutants than cars with BS-IV emission norms, he said, adding, they should be taken off roads. “There are 6,00,000 diesel cars in Delhi, and about a third of them are from the pre-BS emission regime.”
Although Maruti doesn’t have a diesel vehicle with an engine size of two litres and above, the ban is likely to have an overall impact on its sales. About 30% of Maruti’s sales come from diesel vehicles.