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5,000 auto industry jobs impacted by ban on diesel vehicles: Siam

The Supreme Court ban on diesel vehicles and SUVs of engine capacity of 2,000cc and above in Delhi-NCR, which has been in effect since mid-December, has impacted about 5,000 jobs in the automobile sector and has resulted in production loss of around 11,000 units, according to the Society of Indian Automobile Manufacturers (Siam).

In a written submission to the Supreme Court, Siam states there was a production loss 11,000 vehicles due to the ban; this translates to an impact on approximately 5,000 jobs in the industry.

The submission, giving a ground level impact of the apex court’s restrictions, adds that “if extended across the country, it (the ban) would lead to a loss of production of one lakh vehicles over the same period and would have impacted 47,000 jobs.”

As diesel vehicles of 2000 cc and above were not sold they were transferred to the non-NCR dealers for disposal.

Opposing levy of environmental compensation charge (ECC) on diesel vehicles, the automobile industry body said it “could result in permanent job losses of a significant number of industry employees and the problem becomes manifold if such measure gets extended to other parts of the country beyond NCR.”

As there are several PILs filed for banning of four-wheeler diesel passenger vehicles and registrations are pending in different high courts in the country, Siam apprehended that a replication of the Supreme Court ban across the country could “result in a huge, prejudicial adverse impact on manufacturing and direct and indirect employment on a pan India basis”.

“Such adverse repercussions, even on existing employment and much more for future job creation are significant, and without a long term comprehensive policy could be potentially disastrous,” Siam said in its submission.

It further said, “There is no established link between engine capacity and emission levels. As such the 2,000cc limit is arbitrary and the impact of banning these vehicles has an infinitesimal effect on air quality.”