launchGerman luxury car maker Mercedes-Benz has put a hold on its future investments in India, reason being the ban on the sale of diesel vehicles with engine capacity above 2000 cc in the Delhi NCR region. The verdict on the ban has been postponed for the third time.

The car maker termed the current situation as a “lost opportunity for India” and that long term investments in the country will be affected if the ban continued. Mercedes Benz India Managing Director and CEO Roland Folger said, ” Most of the decisions are postponed rather than completely cancelled. If the ban continues, then certainly cancellations will come into play,” He said that the company sees no growth in the segment currently and that bringing in new products depends on volmues.

“These things have been put on hold for the time being… We are basically slowing down in our additional hiring,” Folger said. “It’s just that you cannot justify higher investment with low volumes,” he added.

Mercedes-Benz has invested Rs. 1000 crore in the last ten years, and had announced an additional investment of Rs. 150 crore to double the production capacity to 20,000 units at the Chakan plant, which currently stands at 10,000 units.

On the repercussions of the ban, Folger said: “It is a lost opportunity for India. The point I am trying to make always is, look at it as an international issue. India’s credibility is going to drive investments and in order to stay ahead of the game and make use of the overall economic environment it would be good if we have long-term solutions that help us to provide that kind of growth.”

He further said: “When we came to India, it was perceived as large potential market with very continuous, reliable growth. These things (the ban and higher taxes on diesel vehicles) have stopped that.”

Mr. Folger said that Mercedes-Benz can introduce Bharat Stage VI vehicles in India as early as 2018 but fuel availability was a concern.

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