The National green Tribunal (NGT) ruling calls for de-registering of diesel vehicles over 10 years in Delhi. The decision will have a major impact on the resale of diesel cars in Delhi. As for new cars, though it might boost sales, it might also act as a deterrent for potential diesel car customers.
The ruling however allows the sale of de-registered vehicles in cities and villages outside Delhi. This exemption will help a little due to the lack of scrapping facilities. Fearing risk of having the NGT turning attention to neighbouring places, the potential customers are asking the vehicles for dirt cheap prices. 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 giving them a chance to opt for the vehicle of their choice without budgetary constraints.
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. Moreover, 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 remaining years are being refunded to affected diesel vehicle owners, it will attract legal action.
