JIMS 8M The Journal of Indian Management and Strategy
Web of Science
  • Year: 2025
  • Volume: 30
  • Issue: 2

Diesel Car Ban by 2027 in India: A Disruptive Decision for the Existing Business Environment Factors

1Associate Professor, Unitedworld Institute of Management, Karnavati University, Gandhinagar, Gujarat

2Professor, School of Commerce & Management Studies, Dayananda Sagar University, Bangalore

Online Published on 30 January, 2026.

Abstract

Government of any country always plays an important role on existing business environments through its decision time to time. Diesel-powered vehicles were introduced in the early 1930s. The series production of the model 260D commenced at the end of 1935, and the world’s first regular-production diesel car premiered in February 1936. Diesel vehicles were primarily used for commercial applications and public transportation due to their great torque and high fuel efficiency. Diesel cars have been prevalent in India for several years. They have been popular due to their fuel efficiency and torque, which makes them suitable for long-distance travel and heavy-duty applications. However, there has been a growing concern about the environmental impact of diesel vehicles, particularly in terms of air pollution and emissions of harmful pollutants like nitrogen oxides (NOx) and particulate matter (PM). As a result, the Indian government has implemented various measures to regulate and control the use of diesel cars in the country. These measures include stricter emission norms, higher taxes and surcharges on diesel vehicles, and the introduction of cleaner fuel standards. The government has also encouraged the adoption of electric vehicles (EVs) as a more sustainable alternative to diesel cars. It is worth noting that while there are ongoing discussions and debates about the future of diesel cars in India.

Hence, as a result the government has imposed a BAN ON DIESEL CAR BY 2027 IN INDIA. Because of this one of the business environment factors “legal” plays an important role in changing and transition of this Diesel vehicle to energy efficient and eco friendly alternate transport solution.

Keywords

Diesel car, EV, Business Environment factors