(MENAFN- Gulf Times) Ruling to take heavy toll on vehicle manufacturers, already hit by a slowdown during November-December last year
The Supreme Court yesterday banned the sale of more than 800,000 new vehicles which fall short of new emissions standards, declaring public health more important than company profits.
The court ordered a halt to the sale and registration of vehicles that will not meet new pollution standards come April 1, when a cleaner model of engine will become the norm.
The ruling is expected to affect as many as 824,000 vehicles not yet sold or registered, said the Society of Indian Automobile Manufacturers (SIAM).
'The health of the people is far, far more important than the commercial interests of the manufacturers or the loss that they are likely to suffer, Justices M B Lokur and Deepak Gupta said in their order.
'On and from 1st April, 2017 such vehicles that are not BS-IV (Bharat Stage-IV) compliant shall not be sold in India by any manufacturer or dealer, that is to say that such vehicles whether two-wheeler, three-wheeler, four-wheeler or commercial vehicles will not be sold in India by any manufacturer or dealer...., the court said in its order.
'All the vehicle registering authorities under the Motor Vehicles Act, 1988 are prohibited for registering such vehicles on and from 1st April, 2017 that do not meet BS-IV emission standards, except on proof that such a vehicle has already been sold on or before 31st March, 2017, it added.
Millions of new cars pour onto India's roads every year, worsening air pollution in cities that already rank as the world's dirtiest.
New Delhi took the unenviable title of the world's most polluted city in a 2014 survey of 1,600 cities around the globe by the World Health Organisation.
Twelve other Indian cities also ranked in the top 20.
In a move to combat escalating pollution, the government announced in January last year that all vehicles sold in India would have to meet higher emissions standards from April 1, 2017.
In court, SIAM and automakers argued that they should 'be given reasonable time to dispose of the existing stock manufactured legally until March 31.
The court dismissed this appeal, saying car companies 'chose to sit back and declined to take sufficient pro-active steps despite the looming April deadline.
India, the world's fifth biggest auto market, has said it will switch directly to BS-VI standards by April 2020, skipping the interim BS-V grading altogether.
Yesterday's order was the latest to hit auto companies in India.
In 2015 the same court ordered a moratorium on the registration of large diesel luxury cars in Delhi.
The judgment would take a heavy toll on vehicle manufacturers, already hit by a slowdown during November-December last year due to the ban on old notes.
According to one estimate, the government's notes ban decision had cost the industry revenue worth Rs80bn.
Yesterday's verdict hit the two-wheeler sector the hardest.
According to the data placed in the court, 670,000 of the 825,000 vehicles lying with dealers and companies were two-wheelers.
Transport vehicles accounted for another 97,000 and cars, about 16,000.
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