Diesel SUV ban - Mahindra to refund booking amounts in Delhi

Mahindra has decided to refund booking amounts to customers who have booked its SUVs that are affected by the ban on diesel vehicles over 2,000cc in Delhi.

Earlier this month, the Supreme Court put a ban on the registration of cars and SUVs with diesel engines over 2,000cc in Delhi till March 31, 2016. The step was taken after a report by the World Health Organisation revealed that New Delhi is the most polluted city in the world.

Mahindra is one of the car manufacturers who are likely to be severley affected by this ban. While the company has some models that have smaller diesel engines and some that run on electricity, the major chunk of its sales comes from its 2-litre + diesel models. Vehicles like the Bolero, Scorpio and XUV500 are big contributors in its overall sales. All these vehicles are powered by diesel engines larger than 2,000cc.

With its big sellers out of the equation, Mahindra will have to rely on the TUV300 to see it through till a solution is worked out. The company is also preparing to offer schemes on products such as the Verito, Verito Vibe and the E2O electric vehicle to push sales. Additionally, it will launch the KUV100 compact SUV on January 15, 2016. The car is powered by 1.2-litre petrol and diesel engines, which will allow it to be eligible for registration in the national capital.

Source: Overdrive