Mercedes files plea in Supreme Court to lift diesel ban

The Indian unit of German luxury carmaker Mercedes-Benz has appealed to the Supreme Court to lift the ongoing ban on diesel cars in its key market of Delhi-NCR. The company expressed willingness to pay the environmental cess of one percent levied on the sale of diesel cars.

Mercedes-Benz India filed an affidavit in the Supreme Court on Monday, August 8, saying the ban has resulted in other states having started to impose similar restrictions on diesel vehicles. The apex court hearing has been scheduled for Friday, August 12, 2016.

“Various courts in the country are passing orders banning the registration of new cars with diesel engines of capacity of 2,000cc and more without even considering the fact that the apex court is seized of the matter. The NGT's southern zone circuit bench in Kochi on May 23 banned registration of any diesel vehicle with engine capacity of 2,000cc or more, except vehicles meant for public transport and local authorities,” reports quoted the company as saying. The NGT’s ruling, however, was later stayed by the Kerala High Court on June 10, 2016.

The Indian arm of German automaker recently saw a marginal decline in sales during January to June 2016 as against a year ago, due to the ban on registration of vehicles above 2,000cc in Delhi-NCR, which accounts for around 28 percent of its overall sales. The ban, in place since December 2015, has resulted in nearly all its cars and SUVs being affected.

In its latest hearing on July 4, 2016, the SC reserved its order on the issue but reiterated its willingness to consider lifting the ban, subject to the levy of a one-time environment compensation cess. However, the central government, which has strongly come out against the ban, opposed the imposition of the cess and sought a time of six weeks to conduct a study on impact of diesel vehicles on the environment.