Delhi ban leaves auto companies jittery

Already, automobile dealers and units have suffered huge loss due to poor business and floods, admit highly placed market sources here adding that over the years engineers have started refining the high end vehicles displacing better power with more mileage and less pollution. “Our company recently got the franchise to deal with high-end Jaguar models from Chennai and the floods have left a heavy economic loss at the Guindy Industrial Estate running into a few crores and this latest news of Supreme Court ban is another bad news for us,” said a senior body shop manager with a leading automobile service provider.

Delhi is not just a market, but being the capital city, the total ban will take a beating on the brands that are promoted by automobile manufacturers after researching for years, he said adding that the shares of Mahin-dra that sells the affordable SUVs have already slipped within hours of the apex court order. However, there is nothing very alarming as of now as the eco-friendly apex court order is just an interim order considering the seriousness of Delhi pollution says senior auto analyst Bharat Gianani of Angel Broking, Mumbai.

Gianani said the industries also have a final option of redesigning their engines to a two litre vehicle if at all there is a final order, but the cost of vehicles would further escalate, he opined.