Auto cos against diesel car ban

General Motors India and other member companies of the Association of Indian Automobile Manufacturers (AIAM) on Monday made a representation to Bhure Lal, chairman of the EPA, against the move.

Addressing a news conference in the capital later, V M Raval, AIAM president and executive director, Telco, said: "The EPA has assured us that the views of the auto industry will be taken into consideration on this issue". The EPA is a powerful body formed on the orders of the Supreme Court to deal with environment issues ofDelhi.

Raval stressed the point that the auto industry was not aware that the EPA was considering a ban on sale of diesel cars in Delhi till the media reported the issue. Interestingly, Jagdish Khattar, joint managing director of Maruti Udyog, is a member of the EPA. Maruti also happens to be an AIAM member.

Answering queries, the AIAM members refused to comment on whether the ban will benefit certain companies such as Maruti, which does not have a diesel version on the roads, at the cost of its competitors.

The auto majors defended that a ban on sale of diesel cars will not contribute significantly to reducing pollution on Delhi roads. According to AIAM estimates, a ban on sale of non-commercial diesel vehicles will reduce particulate in the environment by 0.071 per cent by next year. This is not a significant enough reduction to necessitate the ban of diesel vehicles.

The auto companies also tried to shift the blame of pollution from diesel cars to the bad quality of diesel available in Delhi. AbhayFirodia, chairman and managing director, Bajaj Tempo, said that the sulphur content of diesel sold in Delhi was 0.5 per cent in Delhi, as against an acceptable level of 0.05 per cent.

John Parker, managing director, Mahindra Ford India, said that a law such as ban of diesel car sales in Delhi could always be circumvented. "People will find loop-holes in such a law. They can always get their vehicles registered outside Delhi and then drive those vehicles within city limits".

Parker also said that when Ford had made a decision to invest in a diesel car version of Escort, such a ban was not being contemplated.

The auto majors are particularly worried as 60 per cent of all non-commercial vehicle sales originate in Delhi. The ban will affect the launch plans of new cars also as Telco was planning a diesel version of Indica.

The auto companies did not comment on what remedial measures they plan to adopt if the EPA passes such an order. The AIAM members were not clear about whether they can seek judicialredress against the ban.