Tata’s new engines
MUMBAI: Tata Motors is reducing the size of its diesel engines to skirt a temporary ban on the sale of large diesel-powered cars in New Delhi as the government seeks to reduce toxic smog in the capital city. The New Delhi ban on the sale of cars with diesel engine capacity higher than two litres was imposed in December and has hurt carmakers such as Tata Motors, Mahindra & Mahindra and Toyota Motor Corp. The ban, initially imposed until March 31, has been extended by the Supreme Court, which has also indicated that it could levy an additional tax on the sale of diesel cars. The next hearing is later this month. A lack of clarity on when the ban might be lifted and carmakers’ fears that it could be a precursor to a nationwide ban has prompted companies to consider ways around the ban. Tata is re-engineering its existing engines to bring them below two litres, Girish Wagh, senior vice president of programme planning and project management at the company’s passenger vehicle operation, told reporters on Wednesday. Wagh did not say how much the move would cost the firm or a date when it expects to introduce new engines.
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