India cracks down on “dirty” diesel cars

India’s Supreme Court has ordered a temporary ban on the sale of all vehicles with diesel engines larger than a capacity of 2000cc in a bid to tackle cities like New Delhi’s growing problems with toxic smog.

The new ban that came into immediate effect on Wednesday will last until March 31, 2016 could have a huge knock-on effect in the long-term for what cars are developed and sold in India.

In the short-term, reports have already emerged that the crackdown could impact on the country’s shaky economic recovery as dealers are stuck with forecourts full of unsellable vehicles.

Emissions from diesels has been linked with dangerous levels of pollution in European cities like London, Paris and Turin, but the blanket ban has already been described as an overreaction by government critcs.

Speaking to newswire Reuters, Mercedes-Benz India said the Supreme Court ruling would “severely impact” growth and its investment in India.

"We also have to consider the loss of jobs that this will result (in) at the dealerships, at the vendors producing diesel engines,” said a spokesperson from the German car-maker.

As well as the large diesel sales ban, trucks aged 10 years or older have also been banned from entering the capital while any commercial vehicle not delivering to New Delhi have also been banned from entering the city limits.

Taxis, meanwhile, are being urged to replace fleets of diesel vehicles with natural gas-powered cars.

Following the Supreme Court’s announcement of the temporary ban, car and utility manufacturer Mahindra & Mahindra’s shares dropped by 5.5 per cent.