According to sources, this decision has affected the Indian automobile industry hugely and this only increases uncertainty regarding the business climate in the country.

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Unpredictability pertaining to doing business in the country increased with the Supreme Court banning diesel vehicles with capacities above 2, 000 cc in the NCR for a period of three months. This comes right after the Maggi controversy and many still believe that the food conglomerate was unfairly targeted. There have been several cases over the last few years and the latest Supreme Court ruling only increases investor anxiety.

Many CEOs stated how the court order would definitely help citizens and the environment but also talked of how decisions like these would lead to hefty time and financial losses for companies. Certainty is one aspect that is valued for any segment. Stakeholders always reward companies which have performed consistently while penalizing organizations that keep faltering. Sudden decisions and changes like these send out wrong signals to investors and companies. Mercedes Benz is one of the premier companies which are rattled by the decision especially as it comes after the company invested INR 250 crore into the business here. The CEO was forthright about how this investment was based on business stability in the country. With this huge change, investment and expansion planning may go down the drain.

Mahindra & Mahindra, Audi, Mercedes and BMW are among companies who will face the heat of this Supreme Court ruling. The Make in India commitment of many of these companies may also be put aside.

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