Supreme Court said it was willing to lift the ban on the registration of diesel-engine passenger cars and SUVs over 2,000cc in Delhi-NCR subject to a levy of one-time environment compensation cess.

"We are inclined to allow registration. We are open to the registration subject to some kind of one-time cess," a bench comprising Chief Justice T S Thakur and Justices A K Sikri and R Banumathi said.

On December 16, 2015, the apex court has announced a number of measures aimed at curbing rising pollution levels in Delhi and NCR. This included a ban on the registration of diesel-run  cars with engine capacities of 2,000cc and above until March 31, 2016. Later, the ban on registration was extended till further orders.

Despite being badly impacted by the ban; Toyota Kirloskar Motor saw a revival in sales in May 2016 on the back of upbeat demand for the Innova Crysta. Recently, the carmaker has also opened a brand new diesel engine manufacturing plant in Bengaluru, which will manufacture its GD series range of engines – the 2.4-litre and 2.8-litre units.