NGT ban: Auto cos fear big losses, seek clarity from govt
NEW DELHI: Automakers fear an immediate loss of “hundreds of crores of rupees” due to the ban on new diesel vehicles in the national capital, as confusion prevails in the industry over delivery of already-booked inventory.
Companies want the government to immediately clarify about registration and delivery of the vehicles for which customers have already made part or full payments, even as they also stare at huge losses in form of the inventory they had lined up for year-end sales — typically a period when industry doles out big discounts to clear inventories.
The auto industry was jolted into this 'confused' state after the National Green Tribunal (NGT) on Friday ordered an immediate ban on registration of diesel-run vehicles in Delhi and renewal of registration of such vehicles, which are more than 10 years old.
Most auto makers typically keep inventory of 4-6 weeks.
“As far as instruction to dealers is concerned, we are confused,” said Pawan Goenka, executive director, M&M.
When contacted, Maruti Suzuki India chairman RC Bhargava said he would look at the order before commenting on the matter.
Around 1,500 vehicles are registered daily in Delhi, out of which 30% are diesel-run, analysts said.
“Channel partners are faced with a challenge of addressing customer concerns on registration and delivery of vehicles for which payment has been accepted,” Hyundai Motor India senior vicepresident (marketing and sales) Rakesh Srivastava said. “Also, the challenge is on the inventory of diesel vehicles and the cost of it.”
Sumit Sawhney, country CEO and MD (operations), Renault India, said: “Everything is at a standstill. We are waiting.”