New Delhi: In a jolt to ‘Make in India’ in the auto sector, German luxury carmaker Mercedes-Benz said on Wednesday that it has put on hold investments in India due to the ban on sale of larger diesel vehicles in Delhi-NCR. The company said that the issue has put a question mark on the country’s credibility as an investment destination.
“Most of the decisions are postponed rather than completely cancelled. If the ban continues, then certainly cancellations will come into play,” said Mercedes Benz India MD and CEO Roland Folger. He termed the current uncertain situation surrounding diesel vehicles as a “lost opportunity for India”.
“When we came to India, it was perceived as a large potential market with very continuous, reliable growth. These things (the ban and higher taxes on diesel vehicles) have stopped that,” said Mr Folger.
Society of Indian Automobile Manufacturers (SIAM), which represent the auto industry in the country said that the issue may even impact India’s emergence as the global hub of automobile manufacturing.
“There are many markets where diesel vehicles are exported. If diesel engine development is stopped in India it will impact exports,” SIAM, deputy director general Sugato Sen told this newspaper.
He said that a lot of companies are saying that their entire investment has become questionable after the ban on sale of large diesel engine vehicles and there is a lot of confusion in the market. He said the ban on diesel vehicles is a “strong statement” from policymakers that diesel engines are not desirable in India and this creates uncertainty.
