Mercedes' sales flat due to diesel ban

The Indian arm of German automaker Mercedes-Benz today announced that it has registered a flat growth in sales during January to June 2016 as against a year ago, due to the ban on registration of vehicles above 2,000cc in its key market of Delhi-NCR, which accounts for 20 percent of its overall sales. The decision by the Supreme Court (SC) resulted in nearly all its cars and SUVs being affected.

Volumes sold in the January to June 2016 period amounted to 6,597 units, flat year-on-year growth when compared with sales of 6,659 units during the same time last year. The E-class remained the highest selling model for the company and the GLE continued to be the highest selling SUV.

The ban has certainly impacted the growth momentum of the carmaker, who in the year ending December 2015, recorded sales of 13,502 units, up 32 percent as against the 10,201 units sold in 2014.

In its latest hearing on July 4, 2016, the SC reserved its order over a plea by automakers such as Mercedes-Benz India and Toyota Kirloskar Motor seeking to lift the ban on registration of diesel-engined passenger cars and SUVs over 2,000cc in Delhi-NCR. The SC 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.