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Luxury on the Scrap List: Delhi’s Fuel Ban Forces High-End Cars into Distress Sales


Updated: July 03, 2025 18:08

Image Source : CNBC
Delhi’s aggressive push for cleaner air has triggered a wave of distress selling among luxury car owners, as a new fuel ban targeting older vehicles leaves prized possessions unsellable and unusable. The fallout from the July 1 regulation—barring fuel stations from servicing diesel vehicles older than 10 years and petrol vehicles older than 15—has already led to dramatic losses, including a 2015 MercedesBenz ML350 originally bought for Rs 84 lakh, now sold for just Rs 2.5 lakh.
 
Key Developments and Personal Fallout
  • Delhi resident Varun Vij was forced to sell his 10yearold Mercedes ML350 for Rs 2.5 lakh, despite the SUV being in excellent condition with only 1.35 lakh km on the odometer  
  • The vehicle had minimal maintenance history and was a key part of the family’s life, used for weekly 7–8 hour drives to pick up Vij’s son from hostel  
  • Vij had hoped to renew the registration but found no buyers willing to take the risk under the new rule  
  • He has now invested Rs 62 lakh in an electric vehicle to avoid future policy shocks  
Policy Details and Enforcement
  • The fuel ban was enacted under the directive of the Commission for Air Quality Management (CAQM)  
  • Fuel stations across Delhi are now prohibited from dispensing fuel to diesel vehicles older than 10 years and petrol vehicles older than 15  
  • Automated Number Plate Recognition systems are being installed at pumps to identify endoflife vehicles in real time  
  • The Transport Department has issued SOPs mandating logs of denied fuel transactions and legal action against violators  
Wider Impact and Market Disruption
  • Thousands of vehicle owners are now facing similar dilemmas, with many receiving scrap value offers or being forced to sell outside NCR  
  • Another affected resident, Ritesh Gandotra, had to sell his 8yearold Range Rover Evoque—bought for Rs 55 lakh—for a fraction of its value due to the diesel ban  
  • The preowned luxury car market is expected to see a surge in distress listings, with owners scrambling to offload vehicles before enforcement intensifies  
  • The policy has sparked debate over its fairness, especially for responsible owners who maintained their vehicles meticulously  
Environmental Goals vs Economic Realities
  • The regulation aims to curb vehicular pollution in Delhi, which has long struggled with hazardous air quality levels  
  • Critics argue that the policy penalizes ownership rather than incentivizing cleaner alternatives, especially given the high GST and cess on new vehicles  
  • The shift is expected to accelerate EV adoption, but also raises concerns about affordability and infrastructure readiness  
As Delhi’s fuel ban reshapes the city’s automotive landscape, the stories of owners like Vij and Gandotra highlight the emotional and financial toll of abrupt policy shifts—where environmental urgency meets personal upheaval.
 
Sources: CNBC TV18, Financial Express, Moneycontrol, News18, CarToq, LiveMint

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