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INDIA'S SUPREME COURT GIVES REPRIEVE TO AUTO INDUSTRY

08/15/2016

The Supreme Court of India ruled on August 12 that diesel vehicles are allowed on the national capital's streets as long as they pay a 1% "green" tax. The auto industry welcomed the ruling following a series of rulings by lower courts that banned diesel vehicles, old and new. The previous rulings had raised concerns that exhaust fumes from diesel vehicles contribute to the air pollution crisis in Delhi. Last year, the Supreme Court banned the sale of large diesel vehicles temporarily, which hurt the sales of car makers. The recent Supreme Court ruling allows large diesel vehicles, with a capacity of 2 or more liters, to register in Delhi and the National Capital Region. The "green tax" will be imposed on the retail price of vehicles. The court has not yet decided whether to impose the tax on smaller diesel vehicles. Environmentalists are unhappy with the ruling as Delhi is one of the most polluted cities in the world. For the full story, see http://uk.reuters.com/article/us-india-autos-court-idUKKCN10N13K.