Mercedes-Benz and Mahindra and Mahindra will be one of the worst affected auto makers with this new NGT rule to ban diesel cars in excess of 2000cc in Delhi. At the moment, Mercedes-Benz doesn’t have a single diesel engine in India that is smaller than 2000cc. Even the A-Class has a 2.2-litre diesel engine, which is larger than 2.0-litre.
On the other hand, Audi and BMW have 2.0-litre engines and BMW has plans to get a 1.5-litre diesel engine as well on more of its newer products.Mahindra’s best-selling products, the Bolero, Scorpio and even the XUV500 have diesel engines that are larger than 2.0-litre. This will affect the company drastically. Tata Motors UV division will also be affected by this decision. This ban has been implied for a period of three months starting from January 2016.
About 80% of the luxury cars sold are in the diesel variant and major sales happen in metro cities like Mumbai and Delhi. So, it will affect Mercedes-Benz, while for Mahindra only two percent of its sales come from the NCR region. So, there won’t be a major hit area.
