In context of the ban on registration of diesel vehicles, a rally was held on Friday in New Delhi followed by the Supreme Court's decision.
After the court’s verdict, shares of the vehicle manufacturer M&M and Tata Motors raised to 3 percent while the shared of Maruti Suzuki rose to only 1 percent. The Sensex of Bombay Stock Exchange gets higher.
“Delhi is a big market for diesel cars with 7 per cent of total 2.6 million four wheelers and 8,000 luxury cars being sold in Delhi on an annual basis,” according to brokerage Maybank.
In December last year, the court banned the large diesel car vehicle. Through this ban, the sales of the companies such as M&M and Toyota were largely affected.
Moreover, the automakers have protested for the ban of big Diesel cars which have severly affected the investment in the auto industry.
Maruti Suzuki said, “Investors are losing confidence in the wake of diesel vehicles being targeted as the main villain for air pollution in Delhi-NCR region.”
“It would levy an additional tax (1 per cent of the retail price) on the sale of diesel cars,” Court said.