Mahindra and Mahindra to Do a Refund to Diesel Customers Affected by Supreme Court Decision

Mahindra Scorpio 1 photo
Photo: Mahindra and Mahindra
All the customers who are about to buy a Mahindra diesel-powered SUV that comes under the Indian Supreme Court ban will get their booking amount back from the carmaker.
Apart from getting their money back, the customers will be able to choose from the sub-2.0-liter model range, such as Mahindra’s TUV300 model.

The recent Supreme Court ban on all new diesel car sales above 2,000 cubic centimeters in Delhi, together with doubling the tax on all the trucks coming into town, comes after India’s capital city recorded alarming pollution levels. This measure will be in force until March 31, 2016.

Mahindra has a lot to suffer from this decision because its best-selling models, such as the Bolero, Xylo, Scorpio, Thar and XUV500, making up for over 95% of the company’s sales, come under the ban.

Pawan Goenka, Mahindra’s Executive Director, stated that the company has more than 1,000 unsold cars at its dealers throughout Delhi and the National Capital Region (NCR). He has also acknowledged this isn’t the best period his company has had, but they are working on finding new solutions in line with the court’s order.

According to ndtv, no less than 400,000 diesel cars with 2.0-liter engines or bigger are being sold annually in India, and out of that, approximately 5-8% are sold in Delhi and NCR.

In order to quickly stop the massive drop in sales, the Indian carmaker is thinking about introducing more gasoline-powered engines for their SUVs in the near future. Mahindra hasn’t taken this move into consideration until now, because there was no demand for this type of engine in an SUV, although the company already exports a version of the Scorpio, powered by a turbocharged 2.2-liter gas power unit.

All these drastic measures were taken after Delhi was found to have some of the most polluted air in the world. The tiny soot particles found in the air can cause severe lung damage and respiratory illnesses.
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