Mercedes-Benz has filed a plea to the Supreme Court of India to lift the diesel ban and has agreed to pay the one-time environmental cess on diesel cars.
With a majority of their diesel cars having engine capacity over 2000cc, Mercedes-Benz India has not been able to sell their models in the Delhi NCR due to the diesel ban by the Supreme Court of India.
Now the company has filed a plea to the Supreme Court to lift the ban on diesel vehicles in one of the brand key market of Delhi NCR. In the plea, the company has indicated its desire to pay an environmental cess of 1% of the ex-showroom price of the vehicle, which would be levied on the sale of diesel powered vehicles.
An affidavit was filed in the Supreme Court by the Indian outfit of the German manufacturer on Monday, which stated that the ban in NCR has encouraged other states of the country to also impose similar bans and restrictions.
Mercedes-Benz India saw a marginal decline in their sales between the months of January-June 2016 compared to the corresponding months in 2015, which was a result of the diesel ban ruling from the Supreme Court. Delhi NCR accounts for around 28% of the manufacturer’s overall sales in India and the ban has affected all diesel powered SUVs and nearly every sedan the manufacturer sells in India.
In the last hearing in June, 2016, regarding the matter in the Indian judiciary, the Supreme Court reversed the order but had proposed a one-time environment compensation cess from manufacturers for and lift the ban. However, a strong opposition towards the proposal came from the central government who had initially opposed the overall ban itself. The Central Government has requested time to conduct a study on the impact of modern diesel vehicles on the environment.
The hearing of the plea from Mercedes-Benz in India is scheduled to be held on August 12, 2016.