Impact of diesel car ban: 5,000 jobs lost in auto sector; component suppliers hit

Gurugram, May 16 (KNN) The auto component manufacturers, who are mostly the small and medium enterprises (SMEs), have pointed that the demands of the spare parts have gone down massively after Supreme Court’s imposed ban on sale of diesel cars and SUVs of engine capacity 2,000cc and above in Delhi-NCR.

On December 16 last year, the apex court banned sale of all diesel cars/SUVs with an engine capacity of 2,000 cc or more till March 31. It then extended the ban till April 30. As of now, there is no final word on when the SC will conclude the hearing and issue a final order.

KNN caught up some Auto Component Parts Manufacturers who told that diesel cars parts demand has gone down but virtually petrol cars parts demand has gone up.

A Gurugram based supplier to Maruti- Suzuki, Sunil Bakshi, said that petrol car component demand has risen after the ban on diesel cars in Delhi.

“Our factory is still busy in the production work as the fall in demand of diesel car components has been compensated by the rise in petrol car components,” he said.

Rohit Bhatia who supplies parts to Nissan and Tata said, “We don’t have much impact because we only supply components of cars having engine of less than 2000 cc.”

However, he said that the suppliers who supplied parts for the diesel cars above 2000 cc have been badly affected.

He also said that the move has affected only Delhi-NCR and not whole India.

Main victims of the ban are the car dealers who had already booked the cars to sale, he added.

They have inventories which are hurting them now, said the entrepreneur.

The ban imposed on diesel cars and SUVs of engine capacity 2,000cc and above in Delhi-NCR by the Supreme Court has impacted about 5,000 jobs in the automobile sector, according to Siam.

It also said the ban, which is in effect since December 16, has resulted in production loss of around 11,000 units. "... production loss due to the ban of these vehicles in NCR from December 16, 2015 to April 30, 2016 has resulted in 11,000 vehicles, which translates to impact on approximately 5,000 jobs in the industry," Society of Indian Automobile Manufacturers said in a written submission to the apex court. (KNN Bureau)