Hyundai Motor India Managing Director Koo Young-key (center) is presenting a plaque to Nitin Gadkari (right), Minister for Road transport & Highways and Shipping at the traffic safety campaign launching event held at Habitat Center in New Delhi, India, on November 30. On the left is Shri Vijay Chhibber, Secretary Ministry of Road transport & Highways./ Photographed by Ha Man-joo

1

By Ha Man-joo, India correspondent, AsiaToday - The diesel vehicle sale ban ordered by the National Green Tribunal (NGT) to ackle pollution may be affecting car sales in the Indian vehicle market.

Indian business magazine Economic Times (ET) said on Monday that the decision of the NGT to ban the sale of diesel vehicles in Delhi may serve as a momentum where consumers completely shift to petrol cars. If that happens, Hyundai Motor India, Maruti Suzuki, and Honda Cars India would benefit the most. These carmakers are focusing on petrol-cars. Diesel-focused car companies, including Mahindra & Mahindra, Tata Motors, and Toyota Kirloskar Motor, would report lower sales.

NGT, the top environment court in India, on Friday has directed on Friday that no new diesel vehicles would be registered in Delhi until January 6, and vehicles older than 10 years should be phased out completely.

An official from Hyundai Motor India said, "Diesel vehicles accounts for 30% of the total sales in Hyundai Motor, and Delhi contributes about 7% to total vehicle sales in India. So damage will be relatively less than other car companies. However, a temporary sales decline and inventory increase are expected."

Hyundai sold 16,539 vehicles in Delhi with market share of 17.11%, according to SIAM data for the first half of the current fiscal year.

The industry-wise petrol and diesel ration stands at 52 percent to 48 percent. Companies such as Mahindra, Toyota, Tata Motors, and Volkswagen are focusing more on diesel variants. Mahindra does not have petrol variants of its existing models such as XUV 500, Scorpio, Bolero, and Xylo.