"The auto industry has lost Rs 40,000 crore in the last eight months. I feel everyone wants to regulate the auto industry," said SIAM President Vinod K. Dasari at its 56th annual convention.
The ban was lifted by the Supreme Court earlier this month on diesel vehicles above 2,000 cc with one per cent environment cess.
Dasari said, the cess, however, will not deter people from buying the diesel vehicles and is unlikely to have any effect on pollution.
Union Minister for Heavy Industries Anant Geete, who was also present at the conference, said that the ministries were discussing the issue of pollution.
"The auto industry has the government's backing but the court's order must be respected," Geete said.
