Tata hit hard by Delhi diesel ruling

Court directive comes as state government prepares to limit cars on its roads

Tata Motors Ltd led declines by automakers in India trading after the country’s top environmental court temporarily barred registration of new diesel-powered vehicles in New Delhi.

Shares of Tata Motors declined as much as 4.6 per cent to the lowest intraday price since October 15 in Mumbai. Mahindra & Mahindra Ltd dropped as much as 2.7 per cent, while Ashok Leyland Ltd. slipped as much as 1.9 per cent. The benchmark S&P BSE Sensex index fell 0.4 per cent as of 9.51am.

The court’s directive, which the automakers’ group has said could derail the industry, comes as the Delhi state government prepares to restrict the number of cars on its roads by implementing licence platebased driving bans starting on January 1.

Unclean air

The capital is the country’s biggest auto market, accounting for about 7 per cent of national deliveries, according to Pawan Goenka, executive director at Mahindra.

The National Green Tribunal last Friday halted registrations of diesel-engine vehicles in New Delhi until January 6. It asked the Delhi state administration and the federal government to make a “conscientious decision” to not buy diesel-engine vehicles in the city.

The court also directed state-owned companies and all government-related organisations in the municipality to present plans for phasing out diesel vehicles by the time judges consider the case again on January 6.

India’s capital is grappling with rising levels of unclean air as winter sets in, triggering a surge in respiratory diseases. New Delhi was the world’s most polluted city measured by PM2.5 — tiny, toxic particles that lead to respiratory diseases.