Analysts claim that modern diesel engine with over 2000 cc of capacity pollutes very little. They argue that these modern engines are developed by technology leaders like Mercedes, BMW and such likes. Therefore, the initial ban order looked ironical as it targeted the best available (innovations) engines in the market. Such order actually discourages innovations and the crucial investments, especially at a time when PM Narendra Modi is espousing the cause of “Make in India”. Many have withheld their planned expansion in India while preferring to gauge the unfolding regulatory landscape in India. The industry can certainly put up with stricter regulations “Provided those are communicated to them well in advance,” Rathore said. The industry is not worried about technology and it can certainly work as per the expected regulations.
Mercedes, whose base engines start from about 2100 cc and therefore was most grievously hurt by the court’s order, is expected to come back to competition.
With the lifting of the eight-month-long ban, sales of diesel-run luxury cars are expected to crawl back in Delhi and NCR. Mercedes, whose base engines start from about 2100 cc and therefore was most grievously hurt by the court’s order, is expected to come back to competition. Toyota, whose best selling vehicles have engine capacities of above 2000cc, is also expected to gain from the lifting of the ban. Audi and Volkswagen were lucky to survive the onslaught as their base engines were cleverly designed at 1995 cc. Analysts expect India to soon become the fourth largest auto market in the world and the certainty in regulations would only expedite that process.