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Effects on resale of diesel cars post ban in Delhi

Effects on resale of diesel cars post ban in Delhi
Nikhil Puthran Nikhil Puthran Wednesday 20 July 2016, 17:36 PM

The recent ruling from National Green Tribunal (NGT) has come down heavily on all diesel vehicles that calls for de-registering of diesel vehicles over 10 years in Delhi. Though it might boost new car sales for manufacturers, it can also act as a deterrent for customers from opting for a new diesel vehicle. The new ruling will also have a major impact on resale of diesel cars in Delhi.

Due to lack of scrapping facilities, the ruling does allow sale of de-registered vehicles outside Delhi. But then, this too might not yield positive returns as sometime later the NGT ruling might be introduced in neighboring cities too. Fearing the future outcome, potential used car buyers from neighboring cities will not be too keen on opting for diesel vehicles. However, the rural areas might still opt for it as the vehicles will be offered at a very low price and enforcing the NGT ban might be a tough task, thereby allowing potential buyers to opt for the vehicle of their choice without budgetary constraints.

The new regulation will also attract a strong backlash from car users who have already paid road tax for 15 years. Unless the road tax for the remaining years are being refunded to affected diesel vehicle owners, it will attract legal action. The move is also expected to have a drastic effect on the resale car market in Delhi, where almost 30 per cent of vehicles are estimated to run on diesel, thereby meaning many of them moving off the city roads.

 

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