On December 2015, National Green Tribunal (NGT) efforts to reduce the air pollution in Delhi -NCR region ended up with the Supreme Court issuing a ban on new registration of diesel cars and SUVs over 2000cc until March 30th 2016. The court later extended the date until April 30th after which the ban was decided to continue until further orders.
Ministry had requested the NGT as to not impose the ban across the nation, as the decision would affect the Automobile industry adversely, which plays a huge role in the Indian economy. The Automobile sector which stands fifth in position for its nationwide contribution in FDI also plays a pivotal role towards manufacturing GDP in the country.
The ban has shocked many of the major auto companies mainly Toyota Kirloskarwhich has around 13% of its revenues from the National capital region. Vikram Kirloskar, Vice Chairman of TKM stated that they expect sales to be almost the same as last year, with no growth, where it could have actually gone up by almost 12% this year. He also stated that Diesel engines are not the main reason for high pollution levels in the country and this ban would not actually help to tackle the prevailing pollution issues.
Meantime in Kerala, High court issued a stay on the National Green Tribunal's orders last month , to ban light and heavy diesel vehicles above 10 years old as well as new registration of diesel vehicles with 2000cc and above, in six cities including Thiruvananthapuram, Kollam, Kochi, Thrissur, Kozhikode and Kannur.Petitions were filed by Kerala State Road Transport Corporation (KSRTC), Nippon Toyota and others against the NGT orders after which Justice P.B.Suresh Kumar issued the stay order on June 10, 2016.